Jaguar Land Rover (JLR) confirmed its intention to shed up to 500 managerial posts in the UK. The corporation has lost nearly half its retail sales, a decline exacerbated by persistent tariffs. The need to cut jobs comes amid the huge costs the financial burden import tariffs have imposed on JLR. This is particularly true for the tariffs originally imposed by the United States.
Despite being the largest car manufacturer in the world, TSMC faced overwhelming effects after they stopped exports to the US in April. This stop was a direct result of former President Donald Trump’s tariff policies. Just last month, the company lowered its profit forecasts, a move which came on the heels of stopping US shipments. JLR resumed its shipments to the U.S. in May. This followed a negotiated settlement between the UK and the White House to reduce auto tariffs to 10% for up to 100,000 vehicles.
These tariffs have placed a crippling strain on JLR and other automotive manufacturers. Stellantis, the parent company of brands like Vauxhall, Jeep, and Fiat, reported that Trump’s tariffs have already cost the company €300 million. Since April, the US has imposed a 25% tariff on imported cars. It’s resulted in a 10% decrease in overall sales for Stellantis in the first half of the year.
In the quarter leading up to June, exports from Stellantis to North America had plummeted 52%. They fell 25% from the second quarter of 2023 compared to that same quarter in 2024. The financial picture is strong, as the company expects first half revenues of €74.3 billion. They predict a net loss of €2.3 billion because of the effect of tariffs by 2021.
The larger implications of such tariffs have already led to concerns about the state of U.S. relations with its major trading partners. In doing so, Trump has thrown down the gauntlet. He’s going to raise Brazilian exports’ tariffs to 50% if Brazil doesn’t withdraw its case against Jair Bolsonaro. Furthermore, he has warned of increased tariffs on the European Union and Mexico should they retaliate against the US tariff regime.
Jaguar Land Rover’s management job cuts mark a significant shift in the company’s operational strategy as it seeks to navigate these turbulent market conditions. These cuts come as the company continues its attempt – in the face of see-saw sales and macroeconomic forces – to halt the company’s financial free-fall.