JLR profits halve due to US tariffs

The OEM’s revenue decreased 9.2% to £6.6 billion ($8.8bn) in Q2, compared to Q1, which it also attributed to the 27.5% tariffs on exports to the US for cars and parts in its latest financial results.

The carmaker said that wholesale volumes and revenues in the quarter were impacted by the 27.5% tariffs on vehicles and parts, but that the UK’s recent trade agreement with the US was a positive move that would “reduce the significant financial impact of US tariffs going forward”.

OEMs face financial losses as tariffs bite

OEMs are beginning to see the real impact of the tariffs imposed by the US, with profits and operating income for the first half of the year taking hits of billions of dollars.

Megan Kelly

The company said it remains focused on delivering its Reimagine strategy and expects investment spend to remain at £18bn until 2029, funded by operating cash flow, with guidance for the full year 2026 unchanged.

“We are grateful to the UK and US governments for delivering at speed the new UK-US trade deal, which will lessen the significant US tariff impact in subsequent quarters, as will, in due course, the EU-US trade deal announced on 27th July 2025,” said Adrian Mardell, outgoing CEO of JLR. “Looking ahead, we remain focused on delivering our transformational Reimagine strategy, including £3.8bn this financial year to support the development of our next-generation vehicles.”

JLR is the latest in a series of OEMs that have announced profit and revenue slumps due to the adverse affects of the tariffs, with carmakers including Stellantis, GM and VW Group also suffering financially.