Trump tariffs slam the brakes on Jaguar Land Rover: UK's largest carmaker slashes annual profit guidance
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Jaguar Land Rover has warned that Donald Trump’s tariffs will hit profits.
The UK’s largest car maker slashed its annual profit guidance yesterday, telling investors margins would come in between 5 per cent and 7 per cent.
This was compared to the 8.5 per cent margin last year and a 10.7 per cent margin for the January to March quarter.
The company paused shipments to the US for a month at the start of April after Trump whacked a 25 per cent duty on all foreign-made vehicles.
In a reprieve, the UK signed a trade deal in May, which allows it to export 100,000 cars a year to the US under a 10 per cent tariff.
Although JLR produces its Range Rover cars in Britain, its popular Defender SUV is made in Slovakia, which is still subject to heavier tariffs.
Dan Coatsworth at broker AJ Bell said the downgrade to profits suggests that ‘JLR has been forced into the slow lane by Trump’s tariffs’.
Susannah Streeter at Hargreaves Lansdown said: ‘It looks like it’ll be a bumpy ride ahead for Jaguar Land Rover.’
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