Iconic UK car brand Jaguar Land Rover has seen its quarterly sales tumble by more than 10 per cent as the impact of Donald Trump’s tariffs continues to affect major carmakers.
In the three months to June, the UK manufacturer saw its sales slip to 87,286 units as US import tariffs forced an effective halt to American shipments.
The Indian-owned manufacturer paused exports to the US in April after the Trump administration introduced a 25 per cent duty on all foreign-made vehicles entering the world's second-largest car market.
JLR described the quarter as "challenging" in its trading update, with wholesale volumes falling from 97,755 units in the same period last year.
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JLR warned that the brand would face a 'challenging' period due to the tariffs and removal of Jaguar cars
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The company said the decline was "in line with expectations" and reflected both the US tariff impact and the planned wind-down of legacy Jaguar models ahead of the brand's electric transformation.
North America bore the brunt of the decline with sales dropping 12.2 per cent, particularly damaging given the region accounts for one-third of JLR's total sales.
The UK market suffered even more severely, plummeting 25.5 per cent, though this was "most impacted by the planned cessation of the legacy Jaguar models", according to the company's statement.
European sales fell 13.6 per cent while other regions showed mixed results. The Middle East and North Africa bucked the trend with a 20.5 per cent increase, while overseas markets rose by 4.6 per cent, and China edged up one per cent.
Donald Trump confirmed that a 25 per cent tariff would apply to all foreign car importsREUTERSThe Jaguar brand's phase-out accelerated dramatically with sales collapsing nearly 72 per cent to just 2,339 units. Excluding Jaguar's performance, JLR sales declined a modest 5.1 per cent.
The situation for the brand did improve in May when the UK Government secured a US-UK trade deal, reducing tariffs on British auto exports from 27.5 per cent to 10 per cent, though limited to a quota of 100,000 vehicles.
JLR welcomed the announcement, with the company stating it "brings greater certainty for our sector and stakeholders" while noting they would "continue to engage with the UK Government on the detail of the trade deal".
The manufacturer had implemented "a series of short-term actions to address the immediate impact of trade tariffs" at the start of the new financial year in April.
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Despite the partial relief, JLR's Range Rover models manufactured in Britain remain subject to the 10 per cent levy, while its top-selling Defender SUVs produced in Slovakia faced the steeper 25 per cent tariff.
The financial impact has forced JLR to slash its earnings targets, with the company cutting its profit margin forecast for fiscal year 2026 to five to seven per cent from the previous 10 per cent target.
The revision came in June "amid uncertainty in the global auto industry spurred by US tariffs", according to parent company Tata Motors, which derives two-thirds of its revenue from JLR.
Despite the challenges, JLR reported it had achieved its "net debt zero target" at £278million by the end of March, with profit before tax reaching £2.5billion for the full year.
JLR has been forced to adjust its profit margin due to the impact of the tariffs in the US
JLRThe company stated its "priority is to ensure we deliver to our global clients and protect EBIT through the delivery of transformation and efficiency initiatives".
The tariff crisis compounded broader challenges facing JLR, including weak demand in China and slowing European sales that have prompted increased marketing spend to boost volumes.
The company's Reimagine transformation strategy continues despite the headwinds, with Range Rover Electric development progressing through winter testing in Sweden and attracting a waiting list exceeding 61,000.
Adrian Mardell, JLR's chief executive, acknowledged the "evolving global trading environment" while expressing confidence that "strong and consistent performance, the commitment of our people, partners and clients and the appeal of our luxury brands will support our response to current global economic challenges".
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