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Jaguar Land Rover has suspended all cars in the United States for a month as disruption in the global automaker’s supply chain spreads rapidly in response to President Donald Trump’s punitive tariffs on vehicle imports.
The British automaker has suspended freight to resolve its long-term response to a 25% tariff on vehicle imports. This obligation applies to all vehicles gathered outside the United States with partial exemptions in Mexico and Canada.
“The US is an important market for JLR’s luxury brands. As we work to address new terms of business with our business partners, we are enacting short-term actions, including a cargo suspension in April,” the statement said.
The Land Rover Defender, owned by Range Rover producers and India’s Tata Motors, produces almost a quarter of its sales in the US, but it is highly exposed to tariffs due to its lack of local manufacturing capabilities in the US.
Those who described the issue said that JLR had previously considered building plants in the US but instead chose to build another plant in Slovakia before Trump’s first presidency began.
The move by British auto companies underscores the confusion that Trump’s tariffs are unleashing the global automotive industry, which has built a complex supply chain backed by free trade.
It follows the decision on Friday by Chrysler and jeep maker Stellantis to furlough 900 US employees after a temporary suspension of production in Mexico and Canada.
The CEO of Swedish automaker Volvo said Thursday that it was considering adding production of another car model to its US plant in South Carolina.
The group, owned by China’s Geely, recently reclaimed former boss Håkan Samuelsson and navigated the geopolitical challenges posed by the global tariff war.
Nissan, Japan, is considering redesigning its supply chain in response to tariffs.
On Friday, the Japanese group said it would not obtain new orders for two models from the Infiniti Luxury Range, which was built in Mexico. He also said he plans to maintain two shifts on the production line at the Smyrna plant in Tennessee, and previously said it would drop to one shift to save costs.
According to those familiar with Nissan’s plans, Nissan has planned to shift production of fraudulent SUVs from domestic Kyushu factories to Smyrna. Nissan declined to comment.
Attempts to rebuild the automotive supply chain come after the stock market suffered a brutal plunge this week. The S&P 500 lost 10% in two days.
The impact of tariffs on the automotive industry is enormous and will become even more serious if a 25% tariff on a wide variety of imported parts comes into effect on May 3 and is taxed on completed vehicles imposed on Thursday.
Wedbush analysts estimate that tariffs can reduce new car purchases by up to 20%, and increase the price of a typical car from $5,000 to $10,000 for US consumers.
Nissan shift production from Japan is felt by thousands of small and medium-sized expatriates, making it politically sensitive and profit margins already under pressure due to rising wage costs.
Similarly, the JLR suspension adds to concerns about the future health of the UK automotive industry.
Toyota, the world’s largest automaker, signaled its suppliers that it intended to reduce manufacturing costs in response to tariffs, in an attempt to avoid rising consumer prices.
The Japanese automaker was chosen by Trump in his speech announcing “mutual” tariffs. He said Toyota sells 1 million foreign-made cars in the US every year. Japan is the “worst offender,” and “in many cases friends are worse than their enemies in terms of trade,” the US president said.
Many Japanese automakers already own factories in the US and may be wary of assembling large investment packages, analysts say they are given concerns about the high costs and availability of the US labor force.
