Land Rover

Jaguar Land Rover has announced it will “pause” all shipments to the US as it works to “address the new trading terms” after tariffs were imposed earlier this week.

On Thursday, the US President Donald Trump announced a number of measures that have shocked global supply chains, including a 25% tax on imported automobiles.

After the European Union, the United States of America is the UK’s second largest export market for automobiles. “Taking some short-term actions, including a shipment pause in April, as we develop our mid to longer-term plans,” a spokesperson for Jaguar Land Rover stated in a statement. According to the automaker based in Coventry, which also operates facilities in Solihull and Wolverhampton, the United States is an “important market for JLR’s luxury brands.” The United Kingdom exports more goods to the United States than any other country.

According to the UK trade department, the trade was worth £8.3 billion over a 12-month period ending in the third quarter of 2024. On April 3, the first round of car tariffs went into effect, and the next month, import taxes on auto parts will follow. A separate 10% tariff will be imposed on all other UK imports, with higher rates in place for some other major economies.

Companies are trying to figure out how to adapt to the new trading environment, and as a result, global stock markets have suffered significant losses recently. Regarding tariffs, Trump advises the US to “hang tough.” Trump’s tariffs: an explanation The FTSE 100 – which measures the performance of the 100 leading firms listed on the London Stock Exchange – plummeted by 4.9% on Friday, its steepest fall since the start of the pandemic.

Exchanges in Germany and France also saw similar declines.

Sir Keir Starmer has ruled out “jumping into a trade war” and stated that the UK will approach the trade tariffs calmly. On Saturday, the prime minister had a conversation with his French counterpart, Emmanuel Macron. This was the first of several planned conversations between Sir Keir and leaders in Europe over the weekend.

Downing Street stated that Macron and Sir Keir had agreed that “nothing should be off the table” but that “a trade war was in nobody’s interest.” The prime minister stated that the UK would “clearly” be affected on Thursday and that the global economy was “entering a new era.” The government is consulting on products it could impose retaliatory measures on but talks between UK and US officials continue on a possible trade deal which the British governments hopes would see tariffs relaxed.
Sir Keir is meeting with other European leaders to talk about how to react to the White House’s moves regarding trade. West Midland will be hit hard by Trump’s car tariffs.