Jaguar Land Rover Evaluates Impact of New US Tariffs

This week, President Donald Trump announced new tariffs on vehicles imported to the United States. US customers could see prices for cars brought in from the UK surge by 25 percent.

Today, representatives from the British automotive industry are scheduled to meet with government officials as the UK develops a response to this situation. There is hope among ministers that the UK might receive an exemption from these tariffs.

These tariffs are expected to take effect next week and are aimed at increasing domestic car production in the United States.

In 2023, the US imported around eight million vehicles, which accounted for roughly $240 billion (£186 billion) in trade, contributing significantly to overall sales. Jaguar Land Rover (JLR) stands out as the UK's leading vehicle exporter to the US.

JLR maintains a strong presence with about 40,000 employees globally and major manufacturing facilities located in Wolverhampton, Solihull, and Gaydon.

A spokesperson for JLR commented, “Following the announcement by President Trump of 25% tariffs on all auto imports into the USA, we are assessing the impact of the policy on JLR’s business.”

The United States is the second-largest export market for British cars after the EU, with over 101,000 cars shipped there in 2023, making up 16.9% of all UK car exports.

The Society of Motor Manufacturers and Traders (SMMT), the UK's automotive trade body, expressed that the news regarding the tariffs was “not surprising.” They emphasized the importance of the government establishing a constructive agreement in negotiations. SMMT CEO Mike Hawes stated, “The UK and US auto industries have a long-standing and productive relationship, with US consumers enjoying vehicles built in Britain by some iconic brands. Thousands of UK motorists also purchase cars made in America.”

Hawes added, “Rather than imposing additional tariffs, we should explore ways to create opportunities for both British and American manufacturers as part of a mutually beneficial relationship. This approach would benefit consumers and generate jobs and growth on both sides of the Atlantic. The industry urges both parties to collaborate swiftly and secure a deal that is advantageous for all.”

Jaguar, Tariffs, Trade