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Jaguar Land Rover Confirms No Plans to Build Cars in the US Amid Trump Tariffs

5/15/2025
In a surprising announcement, Jaguar Land Rover has confirmed it has no intentions of building cars in the US, citing President Trump's tariffs as a significant factor. This comes after a pause in shipments and growing concerns across the motor industry about the unpredictable trade landscape.
Jaguar Land Rover Confirms No Plans to Build Cars in the US Amid Trump Tariffs
Jaguar Land Rover won't build cars in the US due to Trump's tariffs, impacting the automotive industry and prompting concerns about profit forecasts.

Jaguar Land Rover's Stance on US Manufacturing Amid Tariff Challenges

The UK-based carmaker Jaguar Land Rover (JLR) has officially stated that it does not plan to produce vehicles in the United States, citing the significant impact of President Donald Trump's tariffs on the automotive industry. Following comments made by JLR's CEO during the company's full-year earnings media call, a spokesperson confirmed to the BBC that there are currently no intentions to establish car manufacturing operations in the US.

Impact of Tariffs on Jaguar Land Rover's Operations

Jaguar, which operates without any manufacturing facilities in the US, had initially paused shipments to the country in April after Trump's announcement of the tariffs. However, the company has recently resumed its exports to the US market this month. This decision reflects the ongoing volatility in trade relations, as JLR joins a growing number of companies that are refraining from providing profit forecasts due to the uncertainty surrounding Trump's trade policies.

Recent Developments in US Tariff Policies

On what he termed 'Liberation Day' in early April, President Trump announced a 10% tariff on all goods exported from the UK to the US. This was followed by more stringent tariff measures specifically targeting cars, steel, and aluminium. Fortunately, last week the US government agreed to permit certain steel and aluminium imports tariff-free while also reducing tariffs on a select range of British cars. Nonetheless, a broad 10% tariff remains in place for most UK goods entering the US market.

Broader Industry Effects of Tariffs

JLR is not alone in facing challenges due to these tariffs. Other luxury automakers, such as Mercedes-Benz and Chrysler's parent company Stellantis, have also opted to withhold profit forecasts amidst the uncertainty. Meanwhile, Ford has projected that the US tariffs will cost the company approximately $1.5 billion (£1.13 billion) this year.

Warnings from Executives Across Various Industries

The ripple effects of these tariffs extend beyond the automotive sector. Executives from major corporations, including technology giant Intel, footwear manufacturer Skechers, and consumer goods leader Procter & Gamble, have recently either cut their profit forecasts or completely withdrew them, citing the economic uncertainty stemming from tariff policies. Moreover, sportswear titan Adidas has warned that import taxes imposed by the Trump administration will result in increased prices for popular footwear in the US, such as the Gazelle and Samba models.

Additionally, toy manufacturer Mattel announced this month that it will raise prices on some of its products in the US due to the escalating costs caused by tariffs. As the situation continues to evolve, companies across various sectors are bracing for further impacts as they navigate the complexities of international trade and tariffs.

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