Jaguar Land Rover Halts U.S. Shipments Amid New 25% Tariffs

• Apr 05, 2025

Jaguar Land Rover is pausing all vehicle shipments to the U.S. this April as it adjusts to new 25% import tariffs.

The British carmaker, known for its luxury Jaguar and Land Rover brands, said the move is temporary while it works with its business partners on long-term plans to deal with the steep new tariff. The levy, imposed by the Trump administration, is expected to have a significant impact on the U.K.'s automotive industry.

“The USA is an important market for JLR’s luxury brands,” the company said in a statement on Saturday. “As we work to address the new trading terms, we are taking short-term actions, including a shipment pause in April, as we develop our mid-to-longer term plans.”

The new tariffs come at a time when the British auto industry is already facing serious challenges, including weak demand in the domestic market and the costly transition to electric vehicles.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), warned that the timing of the tariffs could not be worse. “The industry is already facing multiple headwinds and this announcement comes at the worst possible time,” he said. “We need trade discussions to accelerate to protect jobs and economic growth on both sides of the Atlantic.”

To cushion the immediate blow, companies like Jaguar Land Rover had ramped up exports to the U.S. in advance. SMMT data shows that U.K. vehicle exports to the U.S. rose 38.5% in December, 12.4% in January, and 34.6% in February.

“This was manufacturers like JLR trying to get ahead of the game,” said David Bailey, a professor of business economics at the University of Birmingham.

Despite these efforts, the tariffs still pose a threat. The U.K. shipped £8.3 billion ($10.7 billion) worth of vehicles to the U.S. in the 12 months leading up to September, making cars the country’s top goods export to the American market.

However, vehicles only account for a small portion of total U.K.–U.S. trade, which is heavily driven by services. In the same period, Britain exported £179.4 billion ($231.2 billion) in goods and services to the U.S., with services making up more than 68% of the total.

Meanwhile, experts warn that American consumers may soon feel the impact. Rella Suskin, an equity analyst at Morningstar, said car prices are “likely to rise significantly.” She added that while U.S.-made cars might gain some market share, most are not fully manufactured with domestic parts.