Jaguar Land Rover (JLR) will temporarily halt the delivery of its UK-manufactured vehicles to the United States as it weighs its options in mitigating the costs brought about by the tariffs imposed by Donald Trump.

The tariff of 25%, which the US has placed on imported automobiles and light trucks, became effective on April 3.

According to a spokesperson for JLR, the USA remains an important market for JLR’s premium brands. As the company navigates new trade dynamics with its business partners, it is taking short-term actions, which include a pause on shipping in April, while it develops its medium to long-term strategies.

JLR, which is under the ownership of India’s Tata Motors, is one of the UK’s largest manufacturers, with annual sales of 400,000 Range Rover Sports, Defenders, and other models.

Nearly a quarter of these sales are attributed to exports to the US, making JLR central to the UK’s automotive industry and accounting for £1 in every £8 of the country’s exports.

The thinktank Institute for Public Policy Research (IPPR) has forecasted that over 25,000 jobs directly in the car manufacturing industry could be jeopardized due to a prospective decline in exports to the US.

The US is the second-largest importer of British-made cars after the European Union, accounting for nearly 20% of car imports, according to data from the Society of Motor Manufacturers and Traders (SMMT).

In addition to cars, Trump has announced tariffs on other goods from countries worldwide, further disrupting global trade. This move led to the FTSE 100 experiencing its worst performance since the onset of the Covid pandemic.

The British government is currently focused on securing a trade agreement with the United States.

Keir Starmer, the Labour leader, is reportedly reaching out to foreign officials this weekend to discuss the tariffs, following calls with Australian and Italian prime ministers in which they all agreed that a trade war would be “extremely damaging”.

Mike Hawes, the chief executive of SMMT, expressed disappointment over the announcement of a 10% tariff on all UK exports to the US, describing it as “another deeply disappointing and potentially damaging measure”. He also highlighted that while the new tariff is lower than those imposed on other major economies, it will still severely impact the sector already confronting multiple challenges.

Source: https://www.theguardian.com/business/2025/apr/05/jaguar-land-rover-us-shipments-trumps-tariffs