Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Investing

Jaguar Land Rover to cut 500 UK jobs as US tariffs dent exports

admin by admin
July 17, 2025
in Investing
0
Jaguar Land Rover to cut 500 UK jobs as US tariffs dent exports
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

Jaguar Land Rover (JLR) is preparing to slash up to 500 management roles in the UK, citing mounting pressure from American trade tariffs and declining exports.

The announcement comes just weeks after the carmaker paused shipments to the United States, following a spike in import duties triggered by a new US trade policy.

Although tariffs have been partially reduced after a UK-US agreement, the impact has already begun to filter through the company’s operations.

The cutback, representing up to 1.5% of JLR’s UK workforce, will be carried out through a voluntary redundancy scheme.

Export pause and tariffs hit Q2 sales

JLR experienced a decline in sales for the quarter ending June 2025, a drop the company attributes to the temporary halt in exports to the US market and the phasing out of older Jaguar models.

The carmaker, which employs more than 30,000 people in the UK, had paused shipments following US President Donald Trump’s decision to impose a 10% tariff on UK-made vehicles.

The tariff was later lowered from 27.5% to 10% following a bilateral trade deal, but this still marks a fourfold increase from the previous 2.5% rate.

While the tax is levied on importers, JLR’s profit margins were squeezed enough to prompt the temporary suspension of shipments and ultimately initiate job cuts.

The firm resumed US exports only after the revised trade deal took effect, but the interruption had already affected its financials and triggered internal restructuring.

Management roles affected, not factory workers

The cuts will primarily affect JLR’s UK-based managerial staff. The company stressed that the move is part of “normal business practice”.

According to JLR, the goal is to streamline operations without disrupting core production or its transition towards electric vehicle manufacturing.

The firm has been recruiting for roles related to its EV roadmap, and there is no indication of reductions in technical or factory floor staff at this stage.

However, JLR’s Defender, one of its top-performing models built in Slovakia, still faces the original 27.5% tariff due to being manufactured outside the UK. That remains a separate issue not covered by the recent UK-US trade agreement.

Tariff impact despite record earnings

Just months before the announcement, JLR reported £2.5 billion in profit for the year ending March 2025 — its strongest financial performance in over a decade.

However, analysts believe the US tariff environment has undermined some of that momentum. Automotive economist Professor David Bailey noted that despite ramping up hiring for its EV transition, JLR’s pause in US shipments and the tariff hike have put pressure on its operating structure.

The firm’s strong earnings were achieved in part by capitalising on luxury vehicle demand and efficiency gains, but the shift in the trade landscape has forced a reassessment.

Political response and future strategy

Before JLR announced the redundancies, Labour MP Preet Kaur Gill pointed to the tariff reduction deal as a major step in protecting UK automotive jobs.

She noted that the trade arrangement helped preserve 12,000 positions.

However, the new round of job losses underscores the fragile balance between international policy shifts and domestic employment outcomes.

With JLR pushing ahead with its electric vehicle strategy and international expansion, the firm’s next steps will likely involve further internal restructuring and continued engagement with policymakers on trade terms.

The post Jaguar Land Rover to cut 500 UK jobs as US tariffs dent exports appeared first on Invezz

Previous Post

Oracle stock price has surged, but beware of key risks

Next Post

Coca-Cola dodges after Trump says soda will switch back to cane sugar

admin

admin

Next Post
Coca-Cola dodges after Trump says soda will switch back to cane sugar

Coca-Cola dodges after Trump says soda will switch back to cane sugar

Trending News

S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

June 26, 2025
Levi Strauss shares jump 7% on raised outlook; analysts increase price targets

Levi Strauss shares jump 7% on raised outlook; analysts increase price targets

July 11, 2025
Coinbase earnings preview: strong quarter on the horizon, following HOOD’s lead

Coinbase earnings preview: strong quarter on the horizon, following HOOD’s lead

February 13, 2025
Subscribe to Insightful Word


    Recent News

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    August 7, 2025
    Affirm stock price is rising: is it a buy before earnings?

    Affirm stock price is rising: is it a buy before earnings?

    August 7, 2025
    Intel stock plunges sharply after Trump calls on CEO to resign: here’s why rebound may take time

    Intel stock plunges sharply after Trump calls on CEO to resign: here’s why rebound may take time

    August 7, 2025
    Goldman Sachs boosts Nvidia price target to $200 ahead of Q2 earnings

    Goldman Sachs boosts Nvidia price target to $200 ahead of Q2 earnings

    August 7, 2025

    Recent News

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    August 7, 2025
    Affirm stock price is rising: is it a buy before earnings?

    Affirm stock price is rising: is it a buy before earnings?

    August 7, 2025

    Latest News

    • Dow futures soar 250 points today: 5 things to know before Wall Street opens
    • Affirm stock price is rising: is it a buy before earnings?
    • Intel stock plunges sharply after Trump calls on CEO to resign: here’s why rebound may take time

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.