In response to the customs duties announced by US President Trump, Jaguar Land Rover declared that they would not be shipping vehicles to the country for a month. The comprehensive new customs duties announced by US President Donald Trump on April 2nd, “Independence Day”, continue to cause economic upheaval. The UK-based automotive giant, Jaguar Land Rover, decided to suspend all vehicle shipments to the US for one month. According to The Financial Times, Jaguar Land Rover suspended its vehicle exports to the US temporarily while working on a long-term response to Trump’s imposed 25% tariff on car imports. The mentioned tariff, which Trump announced, offers partial exemptions for Mexico and Canada but applies to all vehicles produced outside the US.

“We are taking short-term actions,” Jaguar Land Rover said in a statement, indicating that the US is an important market for the company’s luxury brands. “While working with our business partners to address new trade conditions, we are implementing short-term actions including pausing shipments in April.” Despite the fact that around one-fourth of Range Rover and Land Rover Defender’s sales are made in the US, the company will be significantly affected by Trump’s new tariff due to the lack of local production capacity in the country. Sources familiar with the matter recounted that the company had considered establishing a factory in the US before but instead opened another factory in Slovakia just before Trump’s first term in office.

According to the newspaper’s evaluation, this move by the company also exposed the “chaos” caused by Trump’s customs duties in the global automotive sector. On the other hand, the company’s recent step came after Chrysler and Jeep manufacturer, Stellantis, announced laying off 900 workers in the US on Friday. The CEO of Volvo expressed considering manufacturing another vehicle model in their South Carolina factory in a statement on Thursday while the Japanese automotive giant, Nissan, hinted at restructuring their supply chains in response to the tariffs. The company announced on Friday that they would not be taking new orders from the US for two models of the Infiniti luxury car produced in Mexico.