Jaguar Land Rover (JLR) has warned that its profits will take a hit due to new U.S. tariffs imposed by President Donald Trump, after the company paused shipments to the American market in response to new 25% import tax hikes.

The company, which is owned by India’s Tata Motors, said it is now reallocating vehicles to other markets and may raise prices in the U.S. to soften the financial blow. The American market accounts for more than a quarter of JLR’s global sales.

JLR’s Defender SUV, made in Slovakia, falls outside the scope of a limited UK-U.S. trade deal that allows 100,000 British-made cars to enter the U.S. at a reduced 10% tariff. Without a similar agreement for EU-made vehicles, JLR faces the full 25% rate.

As a result, the company slashed its profit margin forecast from 10% to between 5% and 7% for the current year. In the last fiscal year, JLR posted a margin of 8.5%.

The news sent shares of Tata Motors down more than 5%. Analysts say the company may be partially shielded by its wealthy customer base, but JLR’s lack of U.S.-based manufacturing puts it at a competitive disadvantage compared to rivals like BMW and Mercedes-Benz.

Bentley, another British luxury carmaker, has also paused U.S. sales as it waits for clarity on tariff rules.

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