UK’s Jaguar Land Rover to pause shipments to US over tariffs

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LONDON (Reuters) -Jaguar Land Rover will pause shipments of its Britain-made cars to the United States for a month, it said on Saturday, as it considers how to mitigate the cost of President Donald Trump’s 25% tariff.

Jaguar Land Rover, which is owned by India’s Tata Motors, confirmed the temporary export suspension after the Times newspaper reported the plan.

“As we work to address the new trading terms with our business partners, we are taking some short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans,” JLR said in an emailed statement.

Britain’s car industry, which employs 200,000 people directly, is highly exposed to the new tariffs. The United States is the second-biggest importer of British-made cars after the European Union, with nearly a 20% share, data from industry body SMMT shows.

Jaguar Land Rover, one of Britain’s biggest producers by volume, said in its statement that the U.S. was an important market for its luxury brands. It sells 400,000 Range Rover Sports, Defenders and other models annually and exports to the U.S. account for almost a quarter of sales.

The U.S. 25% tariff on imported cars and light trucks took effect on April 3, the day after Trump announced tariffs on other goods from countries across the globe.

Britain has said it is focused on trying to secure a trade deal with Washington.

The Times said that Jaguar Land Rover is thought to have a couple of months’ supply of cars already in the U.S., which will not be subject to the new tariffs.

(Reporting by Sarah Young; Editing by Tomasz Janowski and Barbara Lewis)