Jaguar Land Rover 'assessing impact' of tariffs ahead of Trump talks

Earlier this week, United States President Donald Trump announced new tariffs for cars coming into the country, with US customers facing a potential 25 per cent increase in prices for cars exported from the UK.

Representatives from the British car manufacturing industry are due to meet with the government today (Friday 28) as the UK prepares a response, with ministers hopeful of a possible UK exemption from the tariffs.

The new tariffs are set to kick in from next week, aimed at boosting domestic car production in the US. 

The US imported about eight million cars last year, which accounted for roughly $240bn (£186bn) in trade and around half of overall sales in the country, with Jaguar Land Rover (JLR) the UK's top exporter of vehicles to the US.

JLR employs around 40,000 people across its global operation, and has major manufacturing sites in Wolverhampton, Solihull and Gaydon.

“Following the announcement by President Trump of 25% tariffs on all auto imports into the USA, we are assessing the impact of the policy on JLR’s business,” said a spokesperson for JLR.

The US is Britain’s second largest car export market after the EU, with more than 101,000 units shipped in 2024, representing 16.9% of cars exported.

UK automotive trade body, the Society of Motor Manufacturers and Traders (SMMT), says that the news of tariffs from President Trump was "not surprising" - but urged the government to find a way of creating a "mutually beneficial relationship" in negotiations. 

“The UK and US auto industries have a long-standing and productive relationship, with US consumers enjoying vehicles built in Britain by some iconic brands, while thousands of UK motorists buy cars made in America,” said Mike Hawes, chief executive at the SMMT. 

“Rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship, benefitting consumers and creating jobs and growth across the Atlantic. 

“The industry urges both sides to come together immediately and strike a deal that works for all.”