British Jaguar Land Rover Halts U.S. Shipments Amid Trump’s Auto Tariffs, Other Automakers Brace for Fallout

British carmaker Jaguar Land Rover has announced a pause in its vehicle shipments to the United States for the month of April, as it begins reassessing the impact of sweeping new tariffs imposed by U.S. President Donald Trump on imported cars.

The company, which described the U.S. as “an important market,” said the move is part of its short-term adjustment strategy as it determines how to navigate what it called the “new trading terms.” In an email to CNBC on Sunday, a Jaguar Land Rover spokesperson confirmed the suspension of shipments, saying, “As we work to address the new trading terms with our business partners, we are enacting our planned short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans.”

The decision comes days after the Trump administration’s 25% tariff on all imported vehicles took effect, triggering a wave of uncertainty and backlash across the global auto industry. The tariffs are a centerpiece of what Trump believes is a protectionist economic strategy to reduce the United States’ trade deficit and encourage domestic manufacturing.

But the ripple effects have been felt across economies. While Jaguar Land Rover is the first high-profile automaker to halt shipments, several others are already weighing their options, signaling a broader shift in the industry’s approach to the American market.

Volkswagen Group, which owns brands like Audi, Porsche, and Bentley, has said it is “actively reviewing” its U.S. supply strategy and pricing models in light of the tariffs. The German automaker, which relies heavily on U.S. imports for luxury and performance models, has warned of potential cost increases and slower deliveries in the months ahead.

Toyota, which imports a wide range of models from Japan, is also assessing its supply chain exposure. While the company operates several plants in the U.S., a large share of its vehicles, including the Land Cruiser, Prius, and many Lexus models, are imported. A company executive told Nikkei Asia that the tariffs “will force a reassessment of pricing, production, and import volume.”

Hyundai and Kia, both of South Korea, have remained cautious but are understood to be reviewing U.S. market strategies. Hyundai in particular may lean more heavily on its Alabama plant for production, though key models like the Palisade and Genesis G80 are still imported and now subject to tariff costs.

BMW, which builds some of its SUVs in South Carolina, also imports several performance sedans and electric models from Germany. The company warned last week that it could be forced to raise prices or shift production if the trade war intensifies.

Tesla, while largely insulated due to its U.S.-based operations, may face cost increases for parts sourced from abroad. The company has said it is “monitoring the situation closely” but declined to comment on specific impacts.

The common thread among all these companies is hesitation — a careful weighing of the pros and cons before reacting. Most are still calculating how much of the tariff burden can be absorbed internally and how much will have to be passed on to consumers through higher prices.

Meanwhile, Trump has touted the tariffs as a bold step toward economic self-sufficiency. “President Trump refuses to let the United States be taken advantage of and believes that tariffs are necessary to ensure fair trade, protect American workers, and reduce the trade deficit—this is an emergency,” the White House said in a statement earlier this week.

However, his actions have sparked a backlash across the globe, including among longtime U.S. allies. British Prime Minister Keir Starmer said London would respond with “cool and calm heads,” but emphasized that the tariffs were a “disappointing escalation” at a time when the two nations were working toward a new bilateral trade agreement.

In Europe, the European Commission has threatened to retaliate with tariffs of its own if the U.S. does not back down. Germany’s Economic Affairs Minister Robert Habeck called Trump’s move “economically harmful and diplomatically irresponsible,” while France’s finance ministry said it would “not hesitate to act in the interest of European industries.”

Canada and Mexico, both significant players in the U.S. auto supply chain, have also expressed concern, with Canada’s Trade Minister Mary Ng warning that “the tariffs risk undermining the very economic integration that has benefited North American workers and consumers.”

The tension is already affecting financial markets. Shares of major automakers fell sharply in the wake of the tariff announcement, with investors fearing production slowdowns and declining U.S. sales. The S&P Global Auto Index dropped nearly 5% over the past week, while shares of Tata Motors, Jaguar Land Rover’s parent company, slipped over 6%.

Industry experts say Jaguar Land Rover’s decision to pause shipments may just be the beginning.

The 25% vehicle tariff is just one part of Trump’s broader protectionist push. Additional tariffs on auto parts are set to go into effect by May 3, which could further disrupt global supply chains and raise production costs for American-based automakers, many of whom depend on foreign parts.

The U.K. was also among the countries hit with a 10% baseline import duty on a wide range of goods, including aluminum and steel — materials that are critical to auto manufacturing. Jaguar Land Rover, with its heavy use of aluminum in vehicle frames, could be particularly exposed to these added costs.

While some companies may shift production to North America to mitigate tariff exposure, such moves require years of planning and billions in investment. In the short term, consumers are likely to bear the brunt, with vehicle prices expected to rise by thousands of dollars on average.