Jaguar Land Rover\u2019s profits almost halved in the last quarter as the impact of US tariffs and declining sales rocked the luxury car manufacturer.<\/p>\n
The Tata-owned carmaker<\/a> said tariffs and currency headwinds were behind a steep 49% fall in underlying pre-tax profits to \u00a3351m in the three months to 30 June.<\/p>\n The period started with Donald Trump\u2019s announcement of swingeing tariffs, which briefly led to JLR pausing exports to the US<\/a>.<\/p>\n A subsequent trade deal between the UK and the US, in which car export tariffs were cut from 27.5% to 10%, was welcomed by JLR but the hiatus contributed to a near \u00a3700m drop in revenues, down 9.2% year on year to \u00a36.6bn.<\/p>\n JLR said the US tariffs had a \u201cdirect and material impact on profitability and cashflow in the period\u201d but that the \u201cUS-UK trade deal will significantly reduce the financial impact of US tariffs going forward\u201d.<\/p>\n A US deal announced with the EU in late July will also \u201cin due course\u201d reduce the impact of tariffs, JLR added, cutting the rate on its EU-made vehicle exports to the US from 27.5% to 15%.<\/p>\n skip past newsletter promotion<\/a><\/p>\n Sign up to Business Today<\/p>\n Get set for the working day \u2013 we’ll point you to all the business news and analysis you need every morning<\/p>\n Privacy Notice: <\/strong>Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy<\/a>. We use Google reCaptcha to protect our website and the Google Privacy Policy<\/a> and Terms of Service<\/a> apply.<\/p>\n after newsletter promotion<\/p>\n Adrian Mardell, JLR\u2019s outgoing chief executive, said the results came in \u201cchallenging global economic conditions\u201d. He added: \u201cWe are grateful to the UK and US governments for delivering at speed the new UK-US trade deal, which will lessen the significant US tariff impact in subsequent quarters, as will, in due course, the EU-US trade deal announced on 27 July 2025.\u201d<\/p>\n He said JLR would invest \u00a33.8bn this financial year in developing its next-generation vehicles, including new electric Range Rover and Jaguar models.<\/p>\n Mardell, who is to be succeeded in November<\/a> by PB Balaji, the group finance chief of Tata Motors, said JLR remained \u201cfocused on delivering its transformational Reimagine Strategy\u201d \u2013 something that, allied to controversial marketing, has led to the company being denounced by Trump<\/a> as a \u201cwoke\u201d carmaker.<\/p>\n Trump continued his attacks this week, claiming that JLR was \u201cin absolute turmoil\u201d and labelling its advertising \u2013 with a diverse group of models in bright clothing<\/a> \u2013 as stupid and disgraceful.<\/p>\n JLR earlier reported a 15% drop in sales<\/a>, partly ascribed to the phasing out of older Jaguar models. The Guardian revealed in July<\/a> that the manufacturer was delaying the planned launches of its new electric models until 2026, allowing for more testing and for demand to pick up.<\/p>\n