LONDON — The automotive giant behind Jaguar and Land Rover automobiles has announced a temporary halt on shipments to the United States. This comes as a reaction from the United Kingdom’s troubled auto sector to the 25% tariffs placed on vehicle imports by President Donald Trump.
Jaguar Land Rover Automotive, one of the foremost automakers in Britain, revealed on Saturday that the suspension of shipments is to be enacted this month.
“The US holds a significant market position for the luxury brands of JLR,” the company disclosed in a statement. “As we negotiate these new trade terms with our partners, we’re implementing short-term measures, such as an April shipment pause, as we formulate mid- to long-term strategies.”
Industry analysts predict that other UK car manufacturers may follow akin paths, as the heightened tariffs add further strain to a sector already grappling with declining domestic demand and the requirement to upgrade facilities for the shift towards electric vehicle production.
“I foresee similar production halts from other companies as they evaluate the ongoing situation,” commented David Bailey, an automotive industry analyst and professor of business economics at the University of Birmingham.
According to the Society of Motor Manufacturers and Traders (SMMT), vehicle production in the UK fell by 13.9% to 779,584 units last year, with over 77% of these being slated for export. Cars produced in the UK include models like Nissan’s Qashqai and Juke, the BMW Mini, the Toyota Corolla, as well as Jaguar and Land Rover vehicles.
“The automotive sector is already contending with multiple challenges, and this news arrives at a highly inopportune moment,” stated Mike Hawes, CEO of the U.K.’s Society of Motor Manufacturers and Traders. He emphasized the importance of continuous communication with the government to accelerate trade discussions critical to securing employment and promoting economic growth on both sides of the Atlantic.
To mitigate the immediate repercussions of the tariffs, British automakers have already started stockpiling vehicles in the US prior to the tariffs being enforced. SMMT data highlighted a significant rise in exports to the US by 38.5% year-on-year in December, followed by increases of 12.4% in January and 34.6% in February.
“This shows that manufacturers like JLR sought to anticipate the situation by increasing inventory in the US before the tariffs took effect,” Bailey noted.
In the 12 months up to September, British car manufacturers exported vehicles valued at 8.3 billion pounds ($10.7 billion) to the US, marking cars as the largest single goods export to the American market, according to official statistics.
Despite this, automobiles constitute a small fraction of the broader trade between the UK and the US, with the relationship heavily inclined towards services.
In total, Britain exported goods and services valued at 179.4 billion pounds ($231.2 billion) to the US in the year up to September, with services comprising 68.2% of that total.