Jaguar Land Rover, the British luxury car manufacturer, announced on Saturday that it would be halting shipments to the United States in April. This decision comes shortly after the implementation of auto tariffs by the administration of President Donald Trump. The company, known for producing luxury vehicles such as Jaguars, Defenders, and Range Rovers, lacks manufacturing facilities in the United States. Consequently, all the vehicles it sells in the U.S. are exported. During the last three months of 2024, Jaguar Land Rover dispatched 38,000 vehicles to the United States. As of Thursday, the Trump administration has imposed a 25% tariff on imported vehicles.
In a statement, the company emphasized the significance of the U.S. market for its luxury brands, acknowledging the need to adapt to the new trading conditions with its business partners. In response, Jaguar Land Rover is implementing temporary measures, including a suspension of shipments in April, while it formulates medium- to long-term plans.
The United States serves as the largest single-country market for British car exports, with £6.4 billion ($8.3 billion) worth of vehicles shipped there in 2023, accounting for approximately a tenth of the total goods exported from Britain. The auto tariffs present a unique challenge for British luxury carmakers, such as Jaguar Land Rover, Bentley, and Aston Martin, which have limited production sites due to their smaller sales volumes. Establishing manufacturing operations in the U.S. has not been economically viable for these companies, leaving them with limited options to circumvent the tariffs. Jaguar Land Rover sells about 20% of its vehicles in the United States.
