Jaguar Land Rover (JLR) has paused all vehicle shipments to the United States for April 2025. The move comes as new 25% tariffs on imported cars disrupt global auto supply chains. These tariffs, introduced by the US government, target foreign-assembled vehicles, with limited exceptions for Canada and Mexico. JLR, a British luxury carmaker, says the pause is part of its short-term response while it works out long-term trade strategies with business partners.
Jaguar Land Rover Responds to New US Tariffs
Jaguar Land Rover confirmed in a statement that it is halting exports to the US for a month. The company cited recent trade shifts caused by new US import duties. “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,” the company said.
JLR, which exports about 31% of its 400,000 annual sales to North America, is one of many automakers affected by the trade changes. These new tariffs are part of the US administration’s broader push to restructure international trade in the automotive sector.
Impact Across the Auto Industry
The effects of these tariffs go beyond just Jaguar Land Rover. Several automakers are now rethinking their supply chains and production models.
Stellantis Furloughs 900 Workers
Stellantis, which owns brands like Jeep and Chrysler, recently furloughed 900 US employees. The decision followed a temporary halt in its operations in Mexico and Canada—two key locations for its manufacturing operations.
Nissan Cuts US Orders, Replans Production
Japan’s Nissan has also taken steps to adjust. The company announced it would stop accepting new US orders for two Infiniti models built in Mexico. Meanwhile, Nissan plans to keep two shifts running at its Tennessee plant, reversing earlier plans to downsize.
A person familiar with Nissan’s strategy said the company may shift some production of its Rogue SUV from Japan to the US to reduce tariff exposure. Nissan has not officially commented on this plan.
Broader Industry Risks
$24.7 Billion Tariff Burden for Japan’s Automakers
UBS analysts estimate that Japanese automakers could face a combined tariff cost of ¥3.6 trillion (roughly $24.7 billion USD) if both tariffs on finished vehicles and imported parts take full effect. The second wave of tariffs is expected to begin on May 3, which could worsen supply chain costs and delay vehicle deliveries.
Thousands of smaller parts suppliers—already hit by rising labor costs—now face extra pressure. These firms often operate on thin profit margins, making them especially vulnerable.
Toyota and Hyundai React
Toyota, the world’s largest automaker, is asking suppliers to lower production costs. The goal is to protect consumers from higher prices caused by the tariffs. In a recent speech, President Trump called out Toyota, accusing the company of flooding the US market with over 1 million foreign-made vehicles annually. He labeled Japan as “the worst violator” of trade fairness, saying “sometimes, a friend is worse than a foe.”
South Korea’s Hyundai, despite announcing a $21 billion US investment package last month, did not receive any special tariff exemptions.
A Global Supply Chain Under Pressure
The global auto industry depends on cross-border manufacturing and parts sourcing. Vehicles are often assembled in one country using parts from many others. The new US tariffs have disrupted this model, forcing companies to consider moving operations to the US or nearby countries to avoid high import costs.
However, building or expanding US factories is expensive. Companies also face challenges in finding enough skilled labor in some regions. As a result, many are choosing to delay or cancel new investment projects until the situation becomes clearer.
JLR’s Move Signals Larger Industry Concerns
Jaguar Land Rover’s decision to pause US exports underscores how trade policy changes can quickly ripple across global industries. It also raises concerns about the future of the UK’s car manufacturing sector, especially given its heavy reliance on exports to the US market.
As more automakers follow suit, there is growing pressure on governments and trade officials to reach new agreements or offer exemptions. For now, companies are in damage control mode—adjusting schedules, reshaping supply lines, and preparing for a new era of trade uncertainty.
What’s Next?
With the second round of tariffs due to begin in early May, automakers are racing against the clock to respond. Industry leaders are calling for urgent talks to prevent further disruptions. Whether or not the US will offer any relief to key trade partners remains to be seen.
Jaguar Land Rover’s shipment halt is just the start of what may be a long period of uncertainty for the auto industry. As countries react to shifting trade rules, carmakers face tough decisions. The next few months will reveal whether these companies can adapt—or if the fallout will lead to longer-lasting setbacks in the global car market.
