Jaguar Land Rover, the luxury unit of India's Tata Motors Ltd., has decided to pause exports to the US in April in light of auto tariffs.
“The USA is an important market for JLR's luxury brands. As we work to address the new trading terms with our business partners, we are enacting our short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans,” a spokesperson for the Range Rover maker said in response to an email from NDTV Profit.
On April 2, US President Donald Trump brought into effect via an executive order a 25% tariff on all foreign carmakers. The tariff is applicable on import of fully assembled cars immediately and auto components with a month's lag on May 3.
“Effective midnight, the US will impose a 25% tariff on all foreign-made automobiles,” Trump had said at the ‘Make America Wealthy Again' event at the White House.
To be sure, India's carmakers are largely insulated from Trump's move as their exports to the US are miniscule. In 2024, India's car exports to the US were at $8.9 million—or 0.13% of its total car exports of $6.98 billion, according to the Global Trade Research Initiative.
But Tata Motors is likely to see a second-hand impact, by way of JLR.
In FY24, the UK unit of India's third largest carmaker drew 23% of its revenue and 26% of wholesale volumes from the US. That's increased to 33% in the nine months through Dec. 31, 2024.
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