JLR Navigates US Tariff Challenges

Jaguar Land Rover (JLR), a Tata Motors unit, is devising strategies to address new US tariffs effective April 2025. The UK-based automaker temporarily halted exports to the US to reassess trade terms, as the American market represents a significant portion of its sales.

Tata Motors revealed on Tuesday that its subsidiary, Jaguar Land Rover (JLR), is exploring ways to respond to the tariffs announced by the United States, set to take effect on April 2, 2025.

In a statement to the stock exchanges, the Mumbai-headquartered automotive giant mentioned that the UK-based JLR has not yet finalized a plan to address the new tariffs.

A week earlier, JLR had announced a temporary halt on vehicle shipments from the UK to the US, aiming to recalibrate trading terms amidst the updated tariff landscape.

The US market is crucial for JLR's luxury brands, making up approximately 23% of its sales in the last fiscal year. In response to the tariff, JLR is implementing short-term measures including a shipment pause, while strategizing for the medium and long-term impact.

During the Trump administration, a 25% tariff on imported cars was introduced, affecting JLR's approach, given that all US-bound vehicles are exported from the UK.

Tata Motors acquired JLR from Ford in 2008, and the latest tariff presents a significant challenge to its operations.

(With inputs from agencies.)