Tata Motors shares tank 13%, hit 52-week low as JLR pauses shipments to the US amid Trump's 25% auto tariffs

JLR is the flagship company of Tata Motors.

“The USA is an important market for JLR's luxury brands,” the company said in a statement. “As we work to address the new trading terms with our business partners, we are taking some short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans.”

The UK automotive industry is expected to be hit hard by the new tariffs, which come at a time when British carmakers are struggling with declining demand at home and the need to retool their plants for the transition to electric vehicles.

“The industry is already facing multiple headwinds, and this announcement comes at the worst possible time,” Mike Hawes, chief executive of the UK's Society of Motor Manufacturers and Traders, said last week. “SMMT is in constant contact with government and will be looking for trade discussions to accelerate, i.e., as we need to secure a way forward that supports jobs and economic growth on both sides of the Atlantic.”

The number of cars made in the UK dropped 13.9% to 779,584 vehicles last year, according to the SMMT. More than 77% of those vehicles were destined for the export market, said a report by AP.

The Society of Motor Manufacturers and Traders (SMMT) is one of the largest and most influential trade associations in the UK.

UK carmakers have already taken steps to lessen the immediate impact of the tariffs by building stockpiles in the US before the increase took effect.

SMMT figures show that exports to the US jumped 38.5% from a year earlier in December, 12.4% in January, and 34.6% in February.

"This was manufacturers like JLR trying to get ahead of the game in terms of getting inventory to the US before the tariffs were implemented," said David Bailey, a professor of business economics at the University of Birmingham.

Trump's 25% tariff

Last month, in a significant policy announcement from the Oval Office, US President Donald Trump declared a 25% tariff on all imported vehicles entering the United States, a move he described as "very exciting" for domestic manufacturing.

The US president imposed 25% tariffs on auto imports and certain automobile parts to support domestic manufacturing.

The tariffs, which came into effect on April 2, impact nearly half of all vehicles sold in the United States, including American brands assembled overseas.

The tariffs will make car production more expensive," stated Autos Drive America, a representative group for international car manufacturers operating in the US, "potentially leading to higher prices for consumers, reduced consumer choices, and potential job market disruptions."

The announcement threatens to escalate trade tensions with key automotive manufacturing nations, including European countries, Japan, and South Korea.

These nations export substantial numbers of vehicles to the United States and may view the tariffs as a direct challenge to their automotive industries.

Tata Motors share price

Shares of Tata Motors have slid over 9% in the past five sessions. In the past year, the stock has fallen over 39%.