It hasn't even been a week since 25-percent tariffs on vehicles imported into the U.S. took effect, and already the effects are being felt in various places. And that’s without getting into the stock market crash.
This past weekend, the Jaguar Land Rover (JLR) group announced it is suspending vehicle exports to the U.S. while it considers how to mitigate the costs of the tariffs imposed by the Trump administration.
“The United States is an important market for JLR's luxury brands. We are implementing our short-term actions, including a pause in shipments in April, as we develop our medium and long-term plans,” a spokesperson said in a statement.
During the fiscal year spanning from March 2024 to February 2025, nearly a quarter of the 430,000 or so vehicles sold by JLR were in the U.S. Given the importance of that market, it’s understandable that the company is taking the time to study its options.
The latest upheaval comes amidst trying times for the carmaker. In January, it announced a 17 percent drop in its quarterly pre-tax profits; it certainly doesn’t need further declines.
Jaguar Land Rover isn’t the first to hit pause on activities in response to the tariffs. Stellantis has already announced a two-week halt in its operations at its Windsor, Ontario plant, while Volkswagen has suspended deliveries of its Mexican-assembled vehicles into the U.S.
As reported by Automotive News, the British automotive industry is very concerned about the tariffs, given that the U.S. is the second-largest importer of vehicles manufactured in Great Britain after the European Union, with a share of nearly 20 percent, according to data from the industry body SMMT (Society of Motor Manufacturers & Traders).
JLR’s pause comes as government authorities focus on reaching a trade agreement with Washington.
According to the London Times, JLR reportedly has a few months' worth of vehicle inventory in the U.S., meaning that consumers likely won’t notice shortages of stock for a few more weeks.