Jaguar commits to UK production — even as tariffs bite
Jaguar Land Rover has confirmed it has no intention of building cars in the United States, even as President Donald Trump’s sweeping tariffs on imported vehicles shake up the global auto industry.
“Following articles based on comments made by the JLR CEO in the full year earnings media call, we can confirm we have no plans to build cars in the US,” a company spokesperson told the BBC.
Jaguar
The announcement comes as automakers around the world weigh how to respond to rising trade barriers. JLR currently has no manufacturing footprint in the U.S., and it paused shipments to American dealers earlier this year in response to a 25% tariff on imported cars and light trucks.
Shipments paused as JLR evaluates options
Jaguar Land Rover temporarily suspended exports to the U.S. in April, describing the move as a short-term step while it reassesses its long-term strategy. “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,” the company said in a statement.
Land Rover
The firm, owned by India’s Tata Motors, has reportedly stockpiled a couple of months’ worth of vehicles at U.S. dealerships, cushioning the immediate impact. Still, the pause highlights just how exposed JLR — and the broader British auto industry — is to shifting U.S. trade policy. The U.S. is the second-largest export market for British-made cars after the EU, accounting for roughly 20% of exports. Jaguar Land Rover alone sells around 400,000 vehicles per year globally, with nearly a quarter of those going to U.S. buyers.
Industry-wide uncertainty grows
JLR joins a growing list of carmakers reluctant to issue financial forecasts due to tariff volatility. Mercedes-Benz and Stellantis have also held back, while Ford estimates the tariffs will cost it $1.5 billion this year.
Larry Printz
Trump’s administration introduced the 25% tariff on April 3, part of a broader set of trade restrictions targeting goods from countries around the world. Britain briefly faced a blanket 10% tariff on all goods before the U.S. agreed to reduce some levies on select British cars, steel, and aluminum. Most UK exports to the U.S., however, remain subject to high duties.
Final thoughts
Jaguar Land Rover’s decision to keep its production in the UK underscores a commitment to its roots, even as economic pressure mounts. While the company is clearly watching trade developments closely, it appears unwilling, for now, to follow competitors in establishing a U.S. manufacturing base. Whether that stance remains sustainable depends largely on how long the current tariff environment lasts and whether a new trade deal between the U.S. and the UK can be struck.
