Car sales for Jaguar Land Rover have been reinstated in the U.S.
Hitting the Brakes It's official—Jaguar Land Rover (JLR) temporarily halted shipments to the US starting from April 30, 2025. According to The Times, this move seems to suggest JLR's willingness to pass on higher costs to its American customers. The luxury carmaker declined to comment on the matter.
Initially, on April 6, JLR announced it would halt supplies to the US, citing the need to evaluate new trading conditions. The US, being a significant market for their luxury vehicles, accounts for a significant portion of JLR's annual sales.
The decision comes after the US imposed a 25% tariff on imports of vehicles and parts produced outside the country. This tariff, effective from April 3, 2025, has caused quite a stir in the automotive industry. US President Donald Trump specified that for vehicles produced under the USMCA agreement, tariffs would only apply to "non-US content" in the car.
JLR has been experiencing a rough patch amid the US trade war, as the American market generates more profit for the automaker than any other. In fact, JLR sells approximately 400,000 vehicles annually, with nearly a quarter of them exported to the US.
Gearing up for medium- and long-term adjustments, JLR is busy working with its business partners to navigate the new trade landscape. While the company has kept the specifics under wraps, they plan to resume shipments by late May 2025, as part of their short-term response to the situation.
The upcoming full-year results announcement on May 10 may shed some light on JLR's financial and operational strategies moving forward. The automaker faces a delicate balancing act, managing price-sensitive models like the Defender alongside high-margin vehicles such as Range Rover, which may fare better under the tariff regime.
- Jaguar Land Rover (JLR) had initially announced on April 6, 2025, that they would halt supplies to the US, attributing the decision to the need to evaluate new trading conditions.
- The US imposition of a 25% tariff on vehicles and parts imported from outside the country, effective from April 3, 2025, has given rise to concerns within the automotive industry.
- The US market accounts for a significant portion of JLR's annual sales, with approximately 400,000 vehicles sold annually, nearly a quarter of which are exported to the US.
- JLR has been negotiating with its business partners to navigate the new trade landscape, aiming to resume shipments by late May 2025, as part of their short-term response to the tariff.
- The upcoming full-year results announcement on May 10, 2025, could provide insights into JLR's financial and operational strategies regarding the tariff and its impact on their cost structure, particularly on price-sensitive models and high-margin vehicles.
