Jaguar Land Rover (JLR) has temporarily pause it’s vehicle shipments to the United States in response to newly imposed 25% tariffs on car imports. The Coventry-based automaker stated it is taking ‘short-term actions’ in April while formulating its medium- and long-term strategy to navigate the new trading conditions. The US is a key market for JLR’s luxury brands and the second-largest export destination for the UK car industry after the European Union.
The tariffs, which came into effect on April 3, were introduced by US President Donald Trump as part of a broader protectionist agenda aimed at reshaping global trade. The initial measures target car imports, with additional levies on auto parts expected next month.
UK car exports to the US have significant economic weight, with a value of £8.3 billion in the 12 months leading to the end of Q3 2024, making vehicles the UK’s top export to the American market.
The ripple effect of the tariffs is being felt across the global automotive industry. Japanese carmaker Nissan is reportedly considering shifting production of US-bound vehicles from Japan to the United States by the summer of 2025, according to the Nikkei. The company recently confirmed it would maintain two production shifts at its Tennessee plant, reversing earlier downsizing plans.
Elsewhere, Stellantis announced it would temporarily close its assembly plant in Windsor, Canada, next week, citing disruptions caused by the new tariffs. The United Auto Workers union welcomed the tariff measures, stating that they represent a shift toward policies that value domestic workers over corporate interests.
Beyond the automotive sector, the trade measures have unsettled global markets. The UK’s FTSE 100 dropped by 4.9% on Friday—its largest fall since the pandemic—while markets in Germany and France posted similar losses.
In response to the evolving situation, UK Prime Minister Sir Keir Starmer has pledged a measured approach. Writing in the Sunday Telegraph, he acknowledged that “the world as we knew it has gone,” and hinted at the possibility of using industrial policy to protect British businesses. While he continues to pursue a trade deal with the US, Sir Keir said he is in talks with other European leaders and warned that “nothing should be off the table.”
During a Saturday call with French President Emmanuel Macron, both leaders agreed that a trade war would be counterproductive but reaffirmed the need for coordinated action. Further discussions with European leaders are expected in the coming days.
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