Jaguar Land Rover will suspend shipments of its UK-made vehicles to the United States for a month as it evaluates ways to address the impact of President Donald Trump's 25% tariff on imported cars, according to a report in The Times.
The company, owned by India's Tata Motors, did not immediately comment on the report, but the decision to pause shipments is seen as a response to the higher costs imposed by the new tariffs. The pause is expected to exacerbate concerns about the impact of tariffs on the UK’s car industry, which employs 200,000 people directly. The United States is the second-largest importer of British-made cars, following the European Union, accounting for nearly 20% of total exports, according to the Society of Motor Manufacturers and Traders (SMMT).
Jaguar Land Rover, one of the UK’s largest car manufacturers, produces models like the Range Rover Sport and Defender, with nearly a quarter of its annual sales of 400,000 units going to the U.S. market. The 25% tariff on imported cars and light trucks from countries outside the U.S. came into effect on April 3, adding to the growing trade tensions that have already disrupted global markets.
While the company is taking steps to adjust, The Times report notes that Jaguar Land Rover has a few months' supply of cars already in the U.S. that will not be subject to the new tariffs. The UK government has said it is focused on securing a trade deal with Washington to alleviate the pressure on British exports.
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