UK’s Jaguar Land Rover to pause shipments to US over tariffs

Jaguar Land Rover will pause shipments of its Britain-made cars to the United States for a month as it considers how to mitigate the cost of President Donald Trump’s 25 per cent tariff.

The company, which is owned by India’s Tata Motors, confirmed the temporary export suspension on Saturday after the Times newspaper reported the plan. 

“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,” JLR said in an emailed statement.

Britain’s car industry, which employs 200,000 people directly, is highly exposed to the new tariffs. 

The United States is the second-biggest importer of British-made cars after the European Union, with nearly a 20 per cent share, data from industry body SMMT shows.

Jaguar Land Rover, one of Britain’s biggest producers by volume, said in its statement that the US was an important market for its luxury brands. 

It sells 400,000 Range Rover Sports, Defenders and other models annually and exports to the US account for almost a quarter of sales.

The US 25 per cent tariff on imported cars and light trucks took effect on April 3, the day after Mr Trump announced tariffs on other goods from countries across the globe.

Britain has said it is focused on trying to secure a trade deal with Washington.

The Times said that Jaguar Land Rover is thought to have a couple of months’ supply of cars already in the US, which will not be subject to the new tariffs.

Nintendo follows suit

Jaguar are not the only company to delay or pause shipping and orders in the wake of Trump’s tariffs. 

Nintendo said it is delaying the start of pre-orders for the Switch 2 gaming device in the United States as it examines the potential impact of tariffs.

The Japanese electronics giant had been set to begin accepting pre-orders in the US on April 9. 

Last week, Mr Trump announced he would be hitting Japan with a 24 per cent reciprocal tariff.

Pre-orders will be paused “in order to assess the potential impact of tariffs and evolving market conditions,” Nintendo said in a statement.

“Nintendo will update timing at a later date.” 

Japanese Trade Minister Yoji Muto called the tariffs “extremely regrettable” and said Tokyo would urge the US to exempt Japan.

Reuters