Jaguar Land Rover (JLR) has announced a temporary halt to all vehicle shipments to the United States following the introduction of new tariffs that came into effect earlier this week.

A 25% levy on car imports was imposed on Thursday as part of a broader package of trade measures introduced by US President Donald Trump, sending ripples through global supply chains. The US is the second-largest market for UK car exports, after the European Union.

In a statement, a JLR spokesperson said the company is "taking some short-term actions including a shipment pause in April, as we develop our mid to longer-term plans" in response to the new trade conditions.

The luxury carmaker, headquartered in Coventry with additional facilities in Solihull and Wolverhampton, emphasized the significance of the US market to its brand. Cars are the UK’s largest export to the US, with trade worth £8.3 billion in the 12 months leading up to the end of Q3 2024, according to government figures.

The initial wave of tariffs took effect on April 3, with additional import taxes on auto parts expected to follow next month.

Wider industry impact

Other carmakers are also reacting to the new tariffs. Nissan is reportedly considering shifting some of its production for US-bound vehicles from Japan to the United States as soon as this summer, according to the Nikkei.

The Japanese car manufacturer, which had previously announced plans to cut back operations at its Tennessee plant, confirmed earlier this week that it would retain two production shifts there.

Stellantis, meanwhile, plans to temporarily shut its assembly plant in Windsor, Ontario — just across the US border — next week in response to the tariffs.

The United Auto Workers union, which represents manufacturing workers across the US and parts of Canada, welcomed the tariffs, stating they "signal a return to policies that prioritise the workers who build this country, rather than the greed of ruthless corporations."

Political response and economic fallout

A separate 10% tariff will apply to all other UK imports, with some major global economies facing even higher rates. The move has rattled international markets, with the FTSE 100 plunging 4.9% on Friday — its sharpest single-day fall since the start of the COVID-19 pandemic. Markets in Germany and France also suffered significant losses.

UK Prime Minister Sir Keir Starmer said the government would take a measured approach to the escalating trade tensions. “The world as we knew it has gone,” he wrote in The Sunday Telegraph, adding that he was prepared to use industrial policy to "shelter British business from the storm."

Starmer ruled out an immediate trade war but emphasized the importance of seeking a deal with the US to avoid the brunt of the tariffs. He is currently in talks with European leaders to form a coordinated response to the White House’s actions.

On Saturday, Starmer spoke with French President Emmanuel Macron — the first in a series of planned discussions with European counterparts. A Downing Street statement said the two leaders agreed that "a trade war was in nobody’s interest," but also that "nothing should be off the table." Photo by Jaguar / Land Rover Factory - Halewood by Anthony Parkes, Wikimedia commons.