Jaguar Land Rover pauses US shipments as Trump’s tariffs bite

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April 6, 2025
4 min read

Jaguar Land Rover pauses US shipments as Trump’s tariffs bite

Jaguar Land Rover halts US shipments this month in response to the 25% tariff imposed by former President Donald Trump on British car imports. It’s a significant move from one of the UK’s most recognisable car brands and one that may be just the start of a wider industry shake-up.

A spokesperson for Jaguar Land Rover confirmed:

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

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For a UK car industry already under pressure from falling domestic demand and the urgent shift to electric vehicles, the tariff could hardly come at a worse time. British factories produced nearly 14% fewer cars in 2023 compared to the year before, with over three-quarters of those vehicles destined for export. Popular models such as the Mini, Toyota Corolla, and Nissan Qashqai are all built in the UK for international markets – the US among the most important.

David Bailey, a business economics professor at the University of Birmingham, says he expects other UK carmakers to follow JLR’s lead. “I expect similar stoppages from other producers as firms take stock of what is unfolding,” he explained, noting that the cost implications of the new tariff regime will be substantial, particularly for premium vehicles.

Although cars remain Britain’s largest goods export to the US, totalling over £8 billion in the year to last September, the wider UK-US trade relationship is dominated by services. Still, the vehicle sector is highly sensitive to policy changes, and the fear among UK manufacturers is that this could trigger a longer-term cooling of US demand for British cars.

“The industry is already facing multiple headwinds and this announcement comes at the worst possible time,” said Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT). “We need trade discussions to accelerate and to secure a way forward that supports jobs and economic growth on both sides of the Atlantic.”

In the run-up to the tariff hike, British carmakers made a clear attempt to get ahead. Export data shows a sharp rise in vehicles shipped to the US in recent months, up over 38% in December alone. “This was manufacturers like JLR trying to get ahead of the game in terms of getting inventory to the U.S. before the tariffs were implemented,” Bailey added.

Despite the export spike, the pause in shipments now signals a more cautious phase as the sector adjusts. The announcement also puts renewed pressure on UK ministers to push for new trade arrangements with the United States that could protect the motor industry and the thousands of workers who rely on it.

For more updates on Jaguar Land Rover halts US shipments and the future of UK car manufacturing, visit EyeOnLondon. We’d love to hear your views in the comments.