May 15, 2025, 1:34 AM
May 15, 2025, 1:34 AM

Jaguar Land Rover announces no plans for US car production amid tariffs

Highlights
  • Jaguar Land Rover confirmed it has no intentions of building cars in the US, following tariff impacts.
  • The company's decision follows the resumption of vehicle exports to the US after an April pause due to tariffs.
  • Automotive and other industries face significant uncertainty due to ongoing trade tensions and tariffs.
Story

In the wake of President Donald Trump's trade tariffs, UK-based car manufacturer Jaguar Land Rover (JLR) has officially stated that it has no current plans to build vehicles in the United States. This announcement comes shortly after the company's CEO made comments during the full-year earnings call, which raised speculation about potential production expansion in America. A JLR spokesperson further clarified their position by confirming to the BBC that there are no plans under consideration for a US plant. This decision is critical given that tariffs imposed by the US government have created an uncertain environment for foreign automakers. In April 2025, Trump announced tariffs on UK goods, including a 10% levy that extended to vehicles, affecting companies like JLR directly. Following this, JLR paused vehicle shipments to the US, which were later resumed in early May, highlighting the immediate effects of these policy changes on international trade. This situation is not exclusive to Jaguar Land Rover alone; other automobile manufacturers such as Mercedes-Benz and Stellantis have also expressed concerns and withheld profit forecasts as trade tensions continue to escalate. Ford has estimated that the ongoing tariffs would cost it around $1.5 billion in the current financial year, showcasing a broader impact on the automotive industry. Moreover, the implications of these tariffs extend beyond the automotive sector. Other industries, including technology and consumer goods, have also reacted to the unpredictability of these trade policies. Major firms like Intel and Procter & Gamble have either reduced or withdrawn their profit projections in response to the heightened trade tensions, further emphasizing the wider economic fallout that President Trump's tariffs have initiated. As of recent agreements, some tariffs on steel and aluminum from the UK have seen reductions, yet a blanket 10% tariff remains applicable to most UK imports to the US, maintaining economic uncertainty.

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