Jaguar Land Rover (JLR) has announced it will “pause” all shipments to the US in response to new tariffs imposed earlier this week. The carmaker is working to “address the new trading terms” following the introduction of a 25% levy on car imports, which took effect on Thursday. This move is part of a broader set of measures introduced by US President Donald Trump, causing disruptions to global supply chains.
The US is the second-largest export market for the UK’s automotive industry, after the European Union. In a statement, a JLR spokesperson said the company is “taking short-term actions, including a shipment pause in April, as we develop our mid to long-term plans.”
The Coventry-based manufacturer, with additional sites in Solihull and Wolverhampton, emphasized that the US remains a key market for its luxury brands. UK exports to the US include more cars than any other goods, with trade in cars valued at £8.3 billion over the 12 months leading up to the third quarter of 2024, according to the UK Trade Department.
The first round of tariffs on cars took effect on April 3, and import taxes on auto parts will follow next month. Meanwhile, Nissan is considering relocating some production of US-bound vehicles from Japan to the US by this summer, according to the Nikkei newspaper. Nissan also decided to keep two production shifts at its Tennessee plant after previously announcing plans to scale back operations.
Similarly, Stellantis, another carmaker, announced it would temporarily shut down its assembly plant in Windsor, Canada, next week due to the tariffs. The United Auto Workers union, which represents car manufacturing workers in the US and southern Ontario, Canada, has supported the tariffs, viewing them as a move to prioritize workers over corporate profits.
In addition to car tariffs, a 10% levy will be imposed on other UK imports, with higher rates for some other major economies. The global stock markets have experienced significant losses as companies adjust to the new trading environment. The FTSE 100, which tracks the top 100 companies on the London Stock Exchange, dropped by 4.9% on Friday, marking its largest decline since the start of the pandemic. Markets in Germany and France also saw sharp declines.
UK opposition leader Sir Keir Starmer has stated that the UK will approach the trade tariffs calmly, avoiding a “trade war.” He acknowledged that “the world as we knew it has gone” but expressed readiness to use industrial policy to protect British businesses. In a Sunday Telegraph article, Starmer emphasized the importance of negotiating a trade deal with the US to mitigate some of the tariffs, and he suggested the possibility of state intervention to safeguard national interests.
Sir Keir is also engaging with European leaders to discuss how to respond to the White House’s trade measures. He had a conversation with French President Emmanuel Macron on Saturday, with plans for further talks. Downing Street indicated that both leaders agreed a trade war would be detrimental but stressed that all options remain on the table.
