Jaguar Land Rover issues 34-word response to Donald Trump tariffs amid job loss fears

There are concerns the tariffs could lead to job losses in the UK motor industry

Jaguar Land Rover (JLR) has responded to US President Donald Trump's introduction of tariffs on cars exported to the USA. President Trump unveiled a range of tariffs in a speech at the White House on Wednesday evening, with a 10% "baseline" import tax slapped on every country that sends goods to the US.

This means the UK will be hit with the 10% tariff on all exports – compared with a 20% rate facing the European Union, and significantly higher levies for countries such as China and Indonesia. Meanwhile, car, steel and aluminium exports will all come under a 25% tariff.

For UK carmakers, the US is the second largest export market behind the European Union. JLR, which is one of the country’s biggest carmakers and has a site Halewood, exported about 38,000 cars to the US in the third quarter of 2024 – almost equal to the amount sold to the UK and the EU combined.

The Express reports that, about President Trump's tariffs, a JLR spokesperson 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 US trading terms."

There is fear that tariffs could result in job losses across the sector in the UK. Tom Jervis, consumer reporter at motoring publication Auto Express, said it is the "blue-collar worker and consumer that will be affected the most".

He said the tariffs "could, in a very worst case scenario, see UK factories close in favour of new facilities being opened up in the US, or perhaps more likely, instigate hundreds or even thousands of job losses as firms scramble to cut manufacturing costs further".

Asked by Nick Ferrari on LBC if up to 25,000 jobs in the motor industry could go following the tariffs, Business Secretary Jonathan Reynolds said: "I know everyone in the automotive sector in particular will have those concerns.

"The products that we have, in the main, are very successful at exporting to the US, from Jaguar Land Rover, BMW, Aston Martin, these are often the higher value parts of the market, so the impact of tariffs will be slightly different to those.

"What I am committed to – and what I genuinely believe we can deliver – is a position where not only are we not in a position where we’ve got to think about job losses or about the loss of exports, but we can strengthen that relationship. That is what we’re committed to doing."

The Business Secretary has also said the 10% tariff on US imports of UK goods will not come on top of the 25% imposed on all foreign cars imported to the US. "As we understand it, those tariffs are not additive", Mr Reynolds told BBC Breakfast.

Tariffs on cars are a "real issue" and there is "no need" for them, he said, adding: "The impact on the automotive sector of that particular tariff is one of our principal concerns.

"People will know companies, great British brands, JLR, BMW, Aston Martin, have substantial exports to the US, and that’s a real issue. Now, we need first of all to make sure we’ve got this negotiation to try and remove those tariffs. There’s no need for them, in my view."

The tariffs the UK has in place on US goods is “about 4%” but the US is "adding in other policy issues to that equation", he said.