- The 25% tariff imposed on imported cars on April 2 was an unexpected move by Donald Trump.
- Now, all automakers are rearranging their plans, taking into consideration the new reality in the US.
- JLR, which is in the midst of reinventing Jaguar, will pause shipments until it can formulate a plan.
On April 2, the US government imposed a 25% tariff on all imported cars and parts. While the move had been rumored for weeks, its official announcement by President Donald Trump still sent ripples through the auto industry—understandably so, given that America is the world’s second-largest car market.
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As other countries are trying to figure things out with some, like Canada, responding in kind, automakers are scrambling to readjust to this new reality. Giant groups like GM and Stellantis may have enough flexibility to minimize their losses, but smaller manufactures such as Jaguar Land Rover cannot afford this luxury. As a result, the Tata-owned British automaker announced that it’s pausing shipment of new cars to the United States for this month.
JLR Can’t Afford To Lose The US – And It Needs To Think Fast
“The USA is an important market for JLR’s luxury brands,” a company spokesperson stated to Bloomberg in an email. “We are enacting our short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans.”
More: 2026 Jaguar Type 01 – Here’s Everything We Know About The $130,000 Electric Sedan
According to JLR’s latest annual report, North America accounted for almost a quarter of the 430,000 vehicles it sold between March 2023 and March 2024. Having posted a 17% drop in quarterly profit in January, this development couldn’t have come at a worst time for the British carmaker – thus, temporarily halting shipments until the management can lay out a cohesive strategy under the new circumstances seems like a wise decision.
The timing is also bad because, for the past few months, Jaguar had managed to make headlines with its controversial reinvention from a premium brand to a luxury one that, instead of Mercedes, BMW and Audi, will rival the likes of Bentley both in opulence and in pricing. Or at least that’s the plan.
If Jaguar’s Rebranding Succeeds, Maybe Tariffs Won’t Matter
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How it will pan out is an entirely different matter, and something no one can predict at this moment. Sure, the brand made big waves in social media and the automotive press with its divisive campaign that was followed by the Type 00 concept which was launched in Miami on December 2. However, moving up to such rarefied air is anything but easy and a historical name is not a guarantee for success – especially when you intentionally alienate your existing, mostly conservative, clientele in favor of a new, fancier, and much wealthier one.
Despite the campaign causing much controversy and even called “woke”, the concept itself was generally well received as a bold step in establishing a new distinct identity. It’s the 2026 Type 00 production car though, an electric sedan with many styling cues from the concept that’s expected to start at $130k, which will prove whether Jag’s upmarket move was the right decision or not.
More: Jaguar Boss Says They’re Not Trying To Be Woke, But Are Okay With Losing Old Customers
Irrespective of their brave statements, we bet the powers that be at Coventry are holding their fingers crossed that the car will prove a success. The troubled automaker doesn’t seem to have a plan B to fall back on if this strategy turns out to be a flop, and with foreign luxury brands already in deep trouble in China, where they used to thrive, the US is simply a market Jaguar can’t afford to lose any ground in.
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Land Rover Might Face Much More Serious Issues Than Jag
The silver lining in this cloud is that, since Jaguar is targeting wealthier clients, an increase in price shouldn’t really affect it that much as buyers in this segment don’t mind spending an extra $20-40k (or more) as long as they like the product. Thus, Trump’s tariffs won’t be a problem if the Type 00 turns out to be as good as Jag’s execs promise.
Land Rover, on the other hand, might find itself in a much more difficult position. Sure, its products sold under the Range Rover badge carry such a prestige and high MSRPs that their sales likely won’t be significantly influenced by any price increases, but buyers of SUVs like the Defender are much more price-conscious and, thus, the brand has a much steeper hill to climb than Jaguar.
