A 25% US tariff just sent shockwaves through Tata Motors—will Jaguar Land Rover’s American dream turn into a nightmare?
Shares of Tata Motors plunged 5% on Thursday after the US announced a 25% tariff on all imported cars, directly impacting its luxury brand, Jaguar Land Rover (JLR).
JLR, which is owned by Tata Motors, relies heavily on the US market for sales. However, unlike some rivals, JLR doesn’t manufacture cars in the US. Instead, it exports vehicles from its factories in the UK and Slovakia.
Now, with the new 25% import tax, JLR’s luxury SUVs and sedans could become more expensive for American buyers, potentially hurting sales and profits.
Also Read: Trump’s Tariffs Could Cripple India’s Auto Parts Industry—What’s Next?
Investors React – Stock Takes a Hit
As soon as the news broke, Tata Motors’ stock dropped sharply, hitting a low of ₹671.70—its biggest fall in nearly two months. Investors are worried about how global automakers, especially those dependent on exports, will cope with rising US trade barriers.
So far, Tata Motors hasn’t revealed its strategy to deal with the tariff hike. Will they absorb the extra costs or pass them on to customers? Only time will tell.
For now, the auto industry is watching closely—will this move slow down JLR’s growth in the US, or can Tata Motors find a way around it?
Also Read: President Donald Trump Announces 25% Tariffs on Imported Cars and Car Parts
