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JLR Holds the Line: No Immediate Plans for US Manufacturing Amid Tariff Turbulence


Updated: May 13, 2025 18:17

Image Source: CarBuzz
Jaguar Land Rover (JLR) has clarified that it has no current plans to build cars in the United States, despite mounting pressure from the newly imposed 25% US tariffs on imported vehicles. During a recent media call, JLR executives emphasized a cautious and measured approach, stating the company will “wait and see and reflect before it acts,” as it navigates the evolving trade landscape.
 
Key Highlights:
  • No US Factory Plans: JLR executives confirmed there are no immediate intentions to establish manufacturing operations in the US, despite speculation that tariffs could force such a move.
  • Tariff Response: The company recently paused, then resumed, exports to the US after the 25% tariff came into effect on April 3, 2025. JLR is currently evaluating its options, which include absorbing tariffs, passing costs to consumers, or exploring other markets, but has not committed to any long-term strategy yet.
  • Market Significance: The US remains a crucial market for JLR, accounting for about 23-25% of its global sales. All US-bound vehicles are currently exported from the UK, making JLR particularly vulnerable to trade policy shifts.
  • Short-Term Actions: JLR has enacted short-term measures, such as temporarily halting shipments, while it works with business partners to address new trading terms and formulates mid- to long-term plans.
  • Industry Impact: The uncertainty has fueled concerns in the UK automotive sector, with analysts predicting a potential 26% drop in JLR’s US sales for FY26 if the tariffs persist.
JLR’s “wait and see” stance signals prudence amid global trade volatility, as the company weighs its next steps in a high-stakes market.
 
Sources: Economic Times, Automotive Manufacturing Solutions, Reuters, Bigul

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