The Trump Administration’s global tariffs take effect today, but the threat has already forced car manufacturers to make business decisions. British luxury automaker Jaguar Land Rover will pause shipments to the United States for the month of April while it works on mid-term and long-term plans to deal with the tariffs. The US imposed a 10% on all goods imported from the UK, but that rate is superseded by the 25% rate on any imported vehicle.
Land Rover
Land Rover is an SUV-exclusive premium brand established in 1948 by the Rover Company as a maker of utilitarian 4×4 vehicles including the iconic Defender. Ownership changed multiple times between then and now, but since 2012, it has been part of the broader Jaguar Land Rover group (now JLR), which is owned by India’s Tata Motors. Land Rover has remained steadfast in its production of SUVs only, now split into three sub-brands, Discovery, Defender, and Range Rover. Discovery models focus on the mainstream, Defender on off-road prowess, and Range Rover as the company’s most luxurious vehicles.
- Founded
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1948
- Founder
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Rover Company
- Headquarters
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Coventry, United Kingdom
- Owned By
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Jaguar Land Rover (JLR)
- Current CEO
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Adrian Mardell
It’s clear to see why a low-volume brand like JLR, which uses a low percentage of US and Canadian parts content, would be badly impacted by these tariffs. A 2025 Land Rover Range Rover, which starts at $107,900, could cost $134,875 after the tariff, and that’s before options.
“Our luxury brands have global appeal and our business is resilient, accustomed to changing market conditions. Our priorities now are delivering for our clients around the world and addressing these new US trading terms.”
What’s The Damage?
A one-month pause in shipments may sound like a short period, but that’s an eternity for the automotive industry. JLR sold 99,277 vehicles to the US in 2024, representing about one-fifth of the company’s global sales. April happened to be the lowest sales month in 2024, with only 5,602 units delivered, but that still makes up more than 5.6% of JRL’s total sales from last year. Even if this pause only lasts one month, a more than 5% drop in sales is nothing to be thrilled about.
Related
Automakers That Will Be Impacted By President Trump’s Tariff Against Mexico And Canada
With impending 25% tariffs against goods manufactured in the USA’s neighboring states, these are the automakers that would be most impacted.
“The USA is an important market for JLR’s luxury brands. As we work to address the new trading terms with our business partners, we are enacting our short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans,” a Jaguar spokesperson told Sky News. It’s currently unclear what these mid- to long-term plans might be, as JLR has never operated any manufacturing facilities in North America.
The ramifications for the brand are greater still when looking at future models. Jaguar has relaunched its entire brand identity, with a shift to upmarket EVs that were going to start at prices over $100,000. Adding a further 25% would push the prices to nearly double what current Jaguar buyers pay for their vehicles and may prove a significant stumbling block for converting those old buyers into new ones.
Tariffs Felt Around The Industry
JLR becomes the first automaker to announce a pause in shipments to the US, but it may not be the last. Ferrari announced it would raise prices due to tariffs and Stellantis will close two factories in Canada and Mexico. Some automakers, like Infiniti, will pause shipments of models made in Mexico (the QX50 and QX55), while BMW promised it would not increase prices on Mexican-built cars, at least temporarily.
News on tariffs will be changing daily and even hourly, as automakers make announcements about their short-term and long-term plans. Some automakers are better equipped to weather the storm of a trade war, but others could be deeply hurt by them.
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