U.S. President Donald Trump confirmed last week that new tariffs on imported goods would take effect on what he called “Liberation Day” for the country. The tariffs start at a baseline of 10%, but are significantly higher for countries such as China (54%), Vietnam (46%), and Taiwan (32%). Imported cars and auto parts are now facing a 25% tariff.
Amid rising global trade tensions, companies are responding to tariffs by increasing import fees and pausing shipments at ports while coordinating with retailers.
About 80% of the cars produced in the UK are exported, with the EU being the most important market and the U.S. following — representing almost 17% of car exports from the island in 2024.
Jaguar Pauses Shipments
Jaguar Land Rover (JLR) announced on Saturday it is temporarily pausing shipments to the US. Approached by Reuters, the Tata Motors-backed firm stated it is working to “address the new trading terms with our business partners”.
“We are taking some short-term actions, including a shipment pause in April, as we develop our mid-to longer-term plans”, the brand added.
JLR issued a statement on its website saying it is “addressing these new US trading terms.”
“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.”
Ferrari Raises Prices
Jaguar Land Rover is not the first brand in Europe to react to the tariffs imposed by the U.S. President. Italian carmaker Ferrari announced in late March that the new duties will affect vehicles that were ordered but are yet to be shipped to the United States.
A spokesperson for the brand stated that “purchase contracts for Ferraris have clear and standard clauses allowing the company to adjust prices in case trade conditions change before the vehicle’s delivery.”
The luxury brand announced it is increasing prices by a maximum of 10% on some of the models sold in the US, starting from last Thursday. The sports carmaker produces all its vehicles in Italy and the U.S. sales represent about 40% of its total figures.
“The commercial terms will remain unchanged for orders of all models imported before April 2, 2025 and for orders of the following three families – Ferrari 296, SF90 and Roma – regardless the import date”.
Volvo Adjusts Production
Volvo announced intentions to shift production to U.S. factories as a way to avoid the tariffs. “We are well prepared in China and in Europe. But we need to be better in the U.S. to get around the import tariffs”, CEO Hakan Samuelsson stated on Thursday, at Volvo’s annual general meeting.
Samuelsson was appointed CEO last week, as Jim Rowan stepped down from the role after nearly three years. Samuelsson, who was a former executive in the company, “ensures stability while preparing to appoint a long-term successor,” Volvo said in a statement.
Volkswagen: Import Fees
Volkswagen Group (which includes brands such as Audi) will introduce an “import fee” on vehicles affected by the tariffs, as reported by the Wall Street Journal last week. According to a memo sent to retailers, the German Group has temporarily suspended rail shipments of vehicles from Mexico and will hold incoming shipments from Europe at port.
Volkswagen will update dealers on pricing by mid-April and start shipping tariff-affected cars by month’s end. “We want to be very transparent about navigating through this time of uncertainty”, the brand told WSJ.
Stellantis’ Layoffs
Stellantis announced a temporary halt in production at some plants in Mexico and Canada. It led to 900 temporary layoffs in its factories in Michigan and Indiana.
The company’s chief operating officer (COO) Antonio Filosa said the moves are necessary as the company evaluates the impact of tariffs. Filosa stated that the immediate layoffs and production pauses “are necessary given the current market dynamics.”
Tariffs
Last Thursday, Donald Trump confirmed the 25% tariff on all foreign-made vehicles and parts. Under the new policy, the EU now faces an effective rate of 20% on all other U.S. goods, while China faces 54%.
Last year, ex-President Joe Biden had increased tariff duties on Chinese EVs from 25 to 100%, which Donald Trump reversed through an executive order as his term started, in January.
The European Commission imposed tariffs on Chinese EV imports in late 2024. Now, China and the EU are in talks to improve investment conditions and strengthen industrial cooperation between their companies.
EU countries plan to present a united front regarding the U.S. tariffs, joining China and Canada in imposing retaliatory tariffs on Donald Trump’s country.
Auto Stocks Fall
Rising trade tensions and back-and-forth tariffs have hit automakers and EV stocks. Tesla shares fell 6.6% on Friday and dropped another 6% on Monday’s session, down to $225. Other U.S. EV makers also such as Rivian by 2% while Lucid shares are trading 1.5% higher.
General Motors and Ford lost between 4% and 5%, while Stellantis fell 5%, hitting its lowest stock price in five years.
