Jaguar Land Rover has announced a temporary halt on all shipments to the U.S. as it adjusts to new trading conditions following the imposition of tariffs earlier this week. A 25% tariff on car imports took effect on Thursday, part of a broader set of measures introduced by U.S. President Donald Trump that have disrupted global supply chains.
The U.S. is the second-largest export market for the UK’s car industry, following the European Union. In a statement, a Jaguar Land Rover spokesperson explained that the company is “taking some short-term actions, including a shipment pause in April, as we develop our mid to longer-term plans.”
The Coventry-based automaker, with additional sites in Solihull and Wolverhampton, emphasized the U.S. as a vital market for its luxury brands. The UK exports more cars to the U.S. than any other product, with trade valued at £8.3 billion in the 12 months leading up to the end of Q3 2024, according to UK trade data.
The initial tariffs on cars came into effect on April 3, with import duties on auto parts set to follow next month. Additionally, a 10% tariff will apply to all other UK imports, with even higher rates for certain major economies.
The global financial markets have responded negatively, with significant losses as companies adjust to the new trade landscape. The FTSE 100, which tracks the performance of the UK’s 100 largest listed companies, dropped 4.9% on Friday—its sharpest decline since the pandemic’s onset. Similar downturns were observed in German and French stock exchanges.
UK opposition leader Sir Keir Starmer has called for a measured response to the tariffs, dismissing the idea of engaging in a trade war. He recently spoke with French President Emmanuel Macron, marking the first of several discussions with European leaders over the weekend. Both leaders agreed that “a trade war was in nobody’s interest,” though they acknowledged that “nothing should be off the table.”
On Thursday, the UK Prime Minister warned that the global economy is “entering a new era” and acknowledged that the tariffs will “clearly” affect the UK. The government is consulting on potential retaliatory measures and is continuing negotiations with U.S. officials in hopes of securing a trade deal that would ease tariffs.
Sir Keir is also engaging with other European leaders to coordinate a response to the U.S. trade policies.