Jaguar Land Rover Automotive has paused shipments to the US market as it develops plans to navigate the new 25% tax on vehicle imports imposed by President Donald Trump. The pause will take effect in April and affects the company’s luxury brands, which are an important part of its business.
The move comes as the British auto industry faces increasing pressure due to declining demand at home and the need to transition to electric vehicles. Analysts predict that other UK carmakers may follow suit, taking steps to address the new trading terms.
Last year, UK car exports dropped 13.9% to 779,584 vehicles, with over 77% of those bound for the US market. The industry is already facing multiple challenges, including the need to secure trade discussions to support jobs and economic growth.
UK carmakers have been building stockpiles in the US before the tariffs took effect, which led to a significant increase in exports in December, January, and February. However, cars remain a small part of overall trade between Britain and the US, with services making up 68.2% of total goods exported.
Jaguar Land Rover’s decision is seen as a response to the growing pressure on the industry, with experts predicting that similar stoppages may follow from other producers. The company has yet to comment on its long-term plans but will continue to work with its business partners to address the new trading terms.
Source: https://www.npr.org/2025/04/06/g-s1-58606/jaguar-land-rover-automotive-pauses-shipments-to-us