Currently reading: JLR pauses shipments to the US in response to new tariffs

British manufacturer says it's working to “address the new trading terms” for its biggest market

JLR has paused shipments to the US as it works to “address the new trading terms” following the implementation of 25% import tariffs on all foreign cars.

“As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid to longer-term plans,” it said in a statement.

The British manufacturer's biggest market is the US, having recorded big increases in sales of the Solihull-built Range Rover and the Slovakian-made Land Rover Defender.

JLR previously said that it remained confident of maintaining sales because ”luxury brands have global appeal and [its] business is resilient, accustomed to changing market conditions".

The decision follows US president Donald Trump's 1 April signing of a bill that penalises all car makers that import cars into the American market.

Trump said the decision was made because of the imbalance of American-made car sales in other markets. 

An identical levy on car parts will be implemented in the coming months.

JLR's decision to pause exports may be partly accounted for by moves to export extra cars to the US before the tariffs were brought in. Data from the Society of Motor Manufacturers and Traders (SMMT) reveals that automotive exports from the UK to the US increased by 34.6% year on year in February, as a result of efforts by firms to avoid the charge.

Around eight million cars were imported into the US last year, approximately half the total sold in the market.

Mexico will be the country hit hardest by the new levy; Canada, Germany, Japan and South Korea will also be badly affected. 

The US is the British automotive industry's second largest export market, behind the EU.

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Will Rimell

Will Rimell Autocar
Title: News editor

Will is Autocar's news editor.​ His focus is on setting Autocar's news agenda, interviewing top executives, reporting from car launches, and unearthing exclusives.

As part of his role, he also manages Autocar Business – the brand's B2B platform – and Haymarket's aftermarket publication CAT.

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