Jaguar Land Rover, owned by India’s Tata Motors, announced it will suspend shipments of its British-made vehicles to the United States for a month in an attempt to mitigate the cost of the 25% tariffs imposed by President Donald Trump.
The British automotive industry is highly vulnerable to the new tariffs, the United States is the second-largest importer of British-made vehicles after the European Union, with a share of nearly 20%, according to data from the Society of Motor Manufacturers and Traders.
Jaguar Land Rover stated in its statement that the United States is an important market for its luxury brands, the company sells 400,000 Range Rover Sport, Defender, and other models annually, with exports to the United States accounting for nearly a quarter of sales.
Jaguar Land Rover is one of Britain’s largest vehicle manufacturers by volume and a significant part of the British automotive industry, directly employing 200,000 people.
Britain has confirmed its focus on trying to conclude a trade deal with Washington, and media reports have indicated that Britain will receive an exemption from US tariffs. However, these remain merely analyses, and nothing official has yet been announced.
The new tariffs imposed by US President Trump are beginning to have an impact on automakers. Stellantis has reduced its operations in the United States, and other companies, such as Nissan, are looking for alternatives.
The same applies to Hyundai, which is seeking to strengthen its presence in the US in an attempt to reduce the costs of the new tariffs.
The current reactions to the tariffs are not final, and strong reactions may emerge in the coming months. Economists fear a global tariff war, leading to an economic recession and high inflation.
