Jaguar Land Rover (JLR) has announced plans to cut up to 500 management roles, attributing the move in part to the impact of US trade tariffs.

The carmaker recently reported a dip in sales for the three months leading up to June, citing a temporary halt in US exports due to tariffs, as well as the gradual phase-out of older Jaguar models.

JLR stated the job reductions would come through a voluntary redundancy programme and are not expected to exceed 1.5% of its UK workforce. The company described the cuts as part of "normal business practice."

Last month, JLR warned that the 10% tariff imposed by US President Donald Trump on UK-made vehicles exported to the US would negatively affect its profitability.

Automotive industry expert Professor David Bailey from Birmingham Business School said the tariffs had “played a big role” in the decision.

“Not long ago, JLR posted record annual profits of £2.5 billion for the year ending March—its strongest performance in a decade,” he told BBC’s Wake Up to Money. He also noted that while the company has been hiring in preparation for a shift to electric vehicle production, the new tariffs had clearly had an effect.

Despite a recent UK-US trade deal lowering car tariffs from 27.5% to 10%, Bailey said the jump from the previous 2.5% rate remains significant. He also pointed out that one of JLR’s top-selling models, the Defender, is built in Slovakia and still faces the full 27.5% tariff when exported to the US.

The tariffs, introduced by the Trump administration, are levied on importers and have affected several UK-based carmakers. JLR had temporarily paused US exports earlier this year after the tariffs were first announced but resumed shipments once the reduced rate was agreed.

JLR employs over 30,000 people in the UK, with major facilities in Solihull, Wolverhampton, and Halewood on Merseyside. The company manufactures several key models, including Range Rover SUVs, in the UK.

Before the job cuts were officially confirmed, Preet Kaur Gill, Labour MP for Edgbaston in Birmingham, highlighted the significance of the new UK-US trade agreement.

Speaking on BBC Politics Live, she said: “Jaguar Land Rover is a vital employer in my region. Thanks to the deal, we’ve been able to save around 12,000 jobs and bring down tariffs. It’s a relationship we’re committed to maintaining.” Photo by Matti Blume, Wikimedia commons.