Carmaker pauses exports to US

Jaguar Land Rover has announced it is pausing shipments to the US this month as it grapples with the 25 per cent tariffs on vehicle imports introduced by President Donald Trump.

“The USA is an important market for JLR’s luxury brands,” the UK-based company says.

“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.”

Trump’s sweeping levies, which included targeting imported vehicles, came into force on April 3.

Other British carmakers are expected to take similar action as the levies put pressure on the industry.

Mike Hawes, chief executive of the UK’s Society of Motor Manufacturers and Traders, says: “The industry is already facing multiple headwinds and this announcement comes at the worst possible time.

“SMMT is in constant contact with government and will be looking for trade discussions to accelerate as we need to secure a way forward that supports jobs and economic growth on both sides of the Atlantic.”

The US is the second largest export market for the UK’s car industry, after the European Union, reports the BBC.

Such trade was worth a reported £8.3 billion (about NZ$19.2b) to the UK in the year to the end of September 2024.

A number of other carmakers are also reassessing their operations because of the higher tariffs.

Nissan is considering shifting some of its production of US-bound vehicles from Japan to the US in the coming months, while Stellantis is temporarily closing an assembly plant in Canada.