Jaguar Land Rover to pause US shipments over tariffs

Jaguar Land Rover will pause all shipments to the US. This decision comes as the company addresses new trading terms after recent tariffs.

A 25% tariff on car imports started on Thursday. This is part of several measures announced by US President Donald Trump. These changes have shocked global supply chains.

The US is the second largest export market for UK cars, after the EU. A Jaguar Land Rover spokesperson said they are taking short-term actions. This includes a shipment pause in April while developing longer-term plans.

Jaguar Land Rover is based in Coventry and has sites in Solihull and Wolverhampton. The US is an important market for JLR's luxury brands.

More cars are exported from the UK to the US than any other goods. In a year ending in Q3 2024, this trade was worth £8.3 billion, according to UK trade data.

Tariffs on cars began on April 3rd, with auto parts tariffs coming next month. A separate 10% tariff will apply to all other UK imports, with higher rates for some economies.

Global stock markets have faced heavy losses recently. Companies are struggling to adapt to these new trading conditions.

Sir Keir Starmer stated that the UK will remain calm about the trade tariffs. He ruled out "jumping into a trade war."

On Thursday, the prime minister warned of a "new era" for the global economy. He noted there would be an impact on the UK.

The government is consulting on potential retaliatory measures against certain products. Meanwhile, talks continue between UK and US officials about a possible trade deal that could relax tariffs.

Sir Keir is also discussing responses with other European leaders regarding these trade moves from Washington.