Jaguar Land Rover and Lotus Pause Shipments to U.S.

British carmakers Jaguar Land Rover and Lotus are among the first foreign brands to react to the new 25 percent tariff on vehicles imported to the United States.

In an initial statement on April 2 JLR said, “Our luxury brands have global appeal and our business is resilient, accustomed to changing market conditions. Our priorities now are delivering for our clients around the world and addressing these new U.S. trading terms.”

On April 5, this was followed by the announcement that JLR was “taking some short-term actions including a shipment pause in April, as we develop our mid to longer-term plans.”

With the imminent, and controversial, relaunch of Jaguar as a luxury EV brand, JLR is reliant on the Land Rover, Range Rover and Defender marques to keep the cash coming. The impact of the new levy on car imports pushing its prices up in that company’s biggest market is significant.

Lotus, meanwhile, which has already had its electrification plans seriously impacted by previous tariffs on China (where its Eletre and Emeya EVs are made), now faces the prospect of the ICE-powered Emira becoming priced beyond what consumers would be willing to pay. As a result, the company says, “Lotus has temporarily paused shipments to the U.S. as we assess the situation and determine the best path forward.”

The United States is the second-largest export market for Britain’s motor industry, after the European Union, and the increased costs of selling cars in America will also impact the likes of Rolls-Royce, Bentley, and Morgan, which have yet to comment.

With very few U.S.-made cars exported to Britain, the auto industry is an example of the trade imbalance that President Trump cites as the reason for introducing the tariffs.

Britain’s Prime Minister Sir Keir Starmer has promised to support its domestic car industry and is seeking to negotiate a deal with the U.S. to avoid some of the levies.