Jaguar Land Rover profits drop 49% on tariffs

Profits cut nearly in half

Jaguar Land Rover’s profits dropped by 49% in the quarter ending June 30, 2025, compared to the same period last year. The company reported underlying pre-tax profits of £351 million during this time.

U.S. tariffs and a fall in sales were cited as the main causes of the decline. JLR said these results were a direct effect of recent trade changes.

Revenue takes a big hit

Jaguar Land Rover’s revenues fell 9.2% year over year to £6.6 billion in the first quarter. This represents a loss of nearly £700 million compared to the same time in 2024.

The company linked this decrease to the pause in U.S. exports and reduced sales in other markets. Older model phaseouts also contributed to lower revenue levels.

Tariffs spark export pause

Jaguar Land Rover temporarily paused U.S. exports in April 2025 after new U.S. auto tariffs were announced, resuming shipments in early May.

The company delayed shipments while waiting for clarity on trade agreements. This pause affected one of JLR’s most important global markets during the quarter.

U.K.-U.S. trade deal brings relief

The Guardian reported that the U.K. and U.S. reached a trade deal in June 2025, reducing tariffs on British-made cars from 27.5% to 10%. Jaguar Land Rover welcomed the agreement and said it would lower the future financial impact of tariffs.

The new U.K.–U.S. agreement took effect the week of June 30 and sets a 10% tariff on the first 100,000 British-made vehicles exported to the U.S.; volumes above that threshold may face higher duties.

EU-U.S. deal also helps

On July 27–28, 2025, the U.S. and EU agreed to reduce tariffs on EU-built vehicles to 15% from above 25%.

Jaguar Land Rover said this would further lessen the financial strain in the future. The company builds certain models in European facilities affected by the previous higher rate.

U.S. market importance

The U.S. accounts for about one-quarter of Jaguar Land Rover’s total sales. This made the impact of tariffs especially significant for the company’s earnings.

Without any manufacturing plants in the U.S., JLR could not avoid the higher import costs. The situation caused short-term profitability and operational challenges during the first quarter.

North America sales decline

Jaguar Land Rover’s wholesale sales in North America fell 12.2% year over year during the quarter. The export suspension and newly imposed tariffs were major reasons for the decrease.

Dealers had fewer vehicles to sell, which limited supply and customer options. The slowdown in shipments also affected the overall revenue performance in this key market.

Jaguar model changes

Jaguar is phasing out legacy models ahead of a 2026 all-electric relaunch, with production and launch timing publicly aligned to 2026.

The shift has temporarily reduced the number of Jaguar models available in showrooms. This change has contributed to lower short-term sales figures for the brand.

EV transition timeline

Jaguar Land Rover delayed the launch of its new electric Jaguar models until 2026. The company said the extra time would allow for additional testing and better alignment with demand growth.

The EV rollout is a key part of the company’s Reimagine Strategy. Until the launch, the available Jaguar lineup will remain smaller.

Leadership transition

Adrian Mardell will retire as JLR CEO in November 2025. P.B. Balaji, currently Tata Motors’ CFO, has been named as his successor.

Tata Motors’ current chief financial officer will take over the position. The leadership change comes as the company navigates tariff impacts and industry shifts.

Mardell on trade deals

As reported by The Guardian, Adrian Mardell thanked both the U.K. and U.S. governments for acting quickly on the new trade deal. He said the EU-U.S. agreement announced in July 2025 would also provide relief in the future.

Mardell described the quarter’s results as occurring under “challenging global economic conditions.” He expressed optimism that the tariff impact will lessen in later quarters.

Planned investment in new models

Jaguar Land Rover intends to invest £3.8 billion in the current financial year. The funds will go toward developing next-generation vehicles, including electric Range Rover and Jaguar models.

This investment is a core part of the company’s long-term strategy. Executives said these projects align with the Reimagine Strategy aimed at transforming the business.

Job cuts announced

Jaguar Land Rover plans to cut up to 500 management jobs in the United Kingdom. These reductions, representing about 1.5% of its 33,000-employee U.K. workforce, will be carried out through a voluntary redundancy program.

The company said the decision is part of its cost-efficiency measures. The announcement came during a quarter marked by sales declines and trade-related challenges.

Currency headwinds add pressure

Unfavorable currency exchange movements added to Jaguar Land Rover’s financial pressures in the first quarter of 2025. The company stated that these shifts reduced profitability alongside the effects of U.S. tariffs.

Together, these factors contributed to the 49% drop in pre-tax profits. Executives expressed hope that recently secured trade agreements will help offset such impacts in future quarters.

Trump’s tariffs have cost automakers $11.7 billion so far, with impacts still growing. This highlights the urgent need for policy solutions to protect manufacturing competitiveness.

Full-year guidance maintained

Despite the steep quarterly drop in revenue and profit, Jaguar Land Rover maintained its full-year guidance. The company expects conditions to improve in the upcoming quarters as reduced U.S. and EU tariffs take effect.

Executives also pointed to upcoming vehicle launches as part of their outlook for recovery. They remain focused on executing the company’s long-term strategic goals during this period.

New tariffs could drive up prices on cars, coffee, and clothing. Policymakers should act quickly to limit these costs for consumers.

What are your thoughts on the impact of tariffs? Share your opinion and join the conversation in the comments.

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This slideshow was made with AI assistance and human editing