Jaguar Land Rover has warned that Donald Trump’s tariffs will hit profits.
The UK’s largest car maker slashed its annual profit guidance yesterday, telling investors margins would come in between 5 per cent and 7 per cent.
This was compared to the 8.5 per cent margin last year and a 10.7 per cent margin for the January to March quarter.
The company paused shipments to the US for a month at the start of April after Trump whacked a 25 per cent duty on all foreign-made vehicles.
In a reprieve, the UK signed a trade deal in May, which allows it to export 100,000 cars a year to the US under a 10 per cent tariff.
Although JLR produces its Range Rover cars in Britain, its popular Defender SUV is made in Slovakia, which is still subject to heavier tariffs.
Bumpy ride: Jaguar Land Rover slashed its annual profit guidance, telling investors margins would come in between 5% and 7%
Dan Coatsworth at broker AJ Bell said the downgrade to profits suggests that ‘JLR has been forced into the slow lane by Trump’s tariffs’.
Susannah Streeter at Hargreaves Lansdown said: ‘It looks like it’ll be a bumpy ride ahead for Jaguar Land Rover.’
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