By Enyichukwu Enemanna
UK auto brand Jaguar Land Rover has announced it will “pause” all shipments to the US, as it works to “address the new trading terms” following tariffs imposed earlier this week by the United States.
US President Donald Trump imposed a 25% tariff on car imports, which came into effect on Thursday, one of several measures announced in a move that has sent shockwaves through the global supply chain.
The US is the second-largest export market for the UK’s car industry, after the European Union.
A Jaguar Land Rover spokesperson said in a statement that the company was “taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans”.
The Coventry-based car manufacturer which also has sites in Solihull and Wolverhampton, said the US is an “important market for JLR’s luxury brands”.
More cars are exported to the US from the UK than any other commodity. In the 12 months to the end of the third quarter of 2024, the trade was worth £8.3 billion, according to the UK trade department.
An initial wave of tariffs on cars came into effect on 3 April, with import taxes on auto parts due to follow next month.
A separate 10% tariff will be imposed on all other UK imports, with higher rates in place for some other major economies.
The Prime Minister, Sir Keir Starmer, has said the UK will take a calm approach to the trade tariffs and has ruled out “jumping into a trade war”.
On Thursday, he warned that the global economy was “entering a new era” and said there would “clearly” be an impact on the UK.
The government is consulting on which products could be subject to retaliatory measures, but talks between UK and US officials continue over a possible trade deal, which the British government hopes will lead to relaxed tariffs.
Sir Keir is holding talks with other European leaders to discuss how to respond to the White House’s trade moves.
