Jaguar Land Rover has decided to temporarily halt all shipments to the United States as it navigates the implications of newly imposed tariffs. A 25% tariff on car imports took effect earlier this week, part of several measures announced by US President Donald Trump that have disrupted global supply chains. The US represents the second-largest export market for the UK’s automotive industry, following the European Union. In a statement, Jaguar Land Rover mentioned it is taking short-term actions, including pausing shipments in April, while formulating its mid to long-term strategies. The Coventry-based manufacturer emphasized the importance of the US market for its luxury brands. The UK exports more cars to the US than any other product, with trade valued at £8.3 billion in the 12 months leading up to the end of Q3 2024. Initial tariffs on cars began on April 3, with additional taxes on auto parts expected next month. A separate 10% tariff will apply to all other UK imports, with higher rates affecting some major economies. Global stock markets have suffered significant losses as companies adjust to the new trading landscape. UK Prime Minister Sir Keir Starmer has stated the country will respond calmly to the tariffs and avoid escalating into a trade war. The government is considering retaliatory measures while continuing discussions with US officials on a potential trade deal that could ease tariffs. Sir Keir is also engaging with European leaders to coordinate a response to the White House’s trade actions.
— new from BBC
