20 hours Ago By Jack Mortimer
Jaguar Land Rover (JLR) has made a defiant statement following President Trump's announcement that a 25 percent tariff will be placed on all cars imported into America. A fresh wave of tariffs were introduced on Wednesday April 2, 2025, which Mr Trump referred to as 'Liberation Day', with the UK also hit with a 10 percent tax on all goods exported to the USA . While there are fears within the automotive industry that the tariffs will see demand for UK-made cars fall, many companies are putting on a brave face.
A spokesperson for JLR highlighted that they are currently in a strong position and are unlikely to take drastic action in response to the tariffs anytime soon. In a blunt 21-word response they explained: "Our luxury brands have never been stronger, and we will address the new US trading terms when they come into force." In 2023, the USA was the UK's largest exporter of new cars, with 16.
9 percent of all models made in Britain crossing the Atlantic and generating £7.6 billion. As with tariffs applied to other goods, President Trump hopes that the price increases forced on imported vehicles will encourage Americans to buy a locally-produced alternative, helping to boost the country's own automotive industry.
The move may also lead to manufacturers being more inclined to set up factories in America, allowing them to sell vehicles within the country without the hefty tariff. However, Philipp Sayler von Amende, Chief Commercial Officer at Carwow Group , noted that the majority of manufacturers may initially absorb the additional costs from the tariffs to remain competitive against locally-built rivals. He added: "These tariffs add further complexity for car manufacturers and their supply chains as they grapple with how to keep British-made cars price-competitive in the US market.
"In the short term, some manufacturers may absorb tariff costs to maintain competitive pricing until existing stock clears, while premium brands in high demand are more likely to pass them on to consumers - like Ferrari, which recently announced a 10 percent US price increase." While the UK was able to avoid the 20 percent tariff on all imported goods that President Trump has imposed on the European Union, many automotive experts are hoping a better trade deal with America could be negotiated. Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), highlighted that the additional costs from the tariffs could have a knock-on effect on the range of models they are able to produce.
He warned: "These tariff costs cannot be absorbed by manufacturers, thus hitting US consumers who may face additional costs and a reduced choice of iconic British brands, whilst UK producers may have to review output in the face of constrained demand.".
