Jaguar Land Rover has announced it will “pause” all shipments to the US as it works to “address the new trading terms” after tariffs were imposed earlier this week.

A 25% levy on car imports came into force on Thursday, one of several measures announced by US President Donald Trump which have sent shockwaves through global supply chains.

The US is the second largest export market for the UK’s car industry, after the European Union.

In a statement, a Jaguar Land Rover spokesperson said the company was “taking some short-term actions including a shipment pause in April, as we develop our mid to longer-term plans”.

The Coventry-based car manufacturer - which also has sites in Solihull and Wolverhampton - said the US is an “important market for JLR’s luxury brands”.

More cars are exported to the US from the UK than any other good. In a 12-month period up to the end of the third quarter of 2024, the trade was worth £8.3bn, according to the UK trade department.

An initial wave of tariffs on cars came into effect from 3 April, with import taxes on auto parts due to follow next month.

A separate 10% tariff will be imposed on all other UK imports, with higher rates in place for some other major economies.