Carmaker Jaguar Land Rover has announced a temporary halt on vehicle shipments to the United States following the implementation of new US tariffs on imported cars.
The British manufacturer confirmed the decision on Saturday, calling it a short-term measure to adapt to the Trump administration’s recently introduced 25% tariff.
The company emphasized that the US remains a key market for its luxury vehicles. Jaguar Land Rover said it is working closely with its partners to respond to the new trading environment and will use this pause in April to prepare its longer-term strategy.
UK auto sector feels pressure from rising tariffs
The tariffs have placed additional strain on the UK automotive sector, which is already facing weak domestic and European demand. According to the UK Department for Business and Trade, cars are the country’s top export to the US, with car shipments reaching £8.3 billion in the four quarters ending Q3 2024. Industry experts believe that Jaguar Land Rover’s decision could prompt other British automakers to take similar steps.
Sales in China have also declined, and British manufacturers are struggling to compete in electric vehicles. Industry analysts say production capacity in the UK is underused, and the tariffs may worsen the situation for struggling factories.
Job concerns grow amid shipment pause
Professor David Bailey from the University of Birmingham warned that the industry could face production cuts and job losses. He said many carmakers were already under pressure, and the new tariffs will likely cause further disruptions. Bailey also noted that the number of jobs at risk may be higher than current estimates suggest.
He added that unless Jaguar Land Rover establishes a manufacturing base in the US, it may continue to face difficulties under the new tariff regime. In contrast, German automakers, including Audi, Mercedes, and BMW, are exploring options to increase US-based operations to limit the impact.
Carmakers rush to ship before tariffs
In anticipation of the tariffs, some UK carmakers had increased exports to the US in recent months. Data from the Society of Motor Manufacturers and Traders shows car shipments rose sharply in December, January, and February, with increases of 38.5%, 12.4%, and 34.6%, respectively. The 25% tariff on all imported vehicles took effect on April 3. An additional 25% duty on spare automobile parts is scheduled for May 3, affecting all countries regardless of existing trade agreements.