JLR warns US tariffs will hit profit margins

The car company cut its cashflow expectations in a presentation to investors

Jaguar Land Rover has downgraded its profit predictions for the year, as it warned of the impact of President Donald Trump's tariffs and heightened global uncertainty.

JLR, which is owned by India's Tata, said it expected margins on underlying profits of between 5% and 7% this financial year.

The Coventry-based car manufacturer had previously pointed towards 10% for the year, while it posted an underlying profit margin of 8.5% for the year to March.

In April, the UK's largest employer in the automotive sector halted all shipments to the US after President Trump's administration imposed an additional 25% tariff on car imports, but restarted in May.

The move followed the UK reaching an agreement to export 100,000 cars a year to the US at a reduced 10% tariff.

JLR, whose sites include Solihull, Wolverhampton and Halewood on Merseyside, builds Range Rover SUV models in the UK and manufactures Defender models in Slovakia.

The car company cut its cashflow expectations in a presentation to investors.

It said it was seeking to offset tariffs by reallocating vehicles "to accessible markets" and potentially increasing prices in the US.

JLR stated the company was still committed to its long-term investment plans and expected a "resilient financial performance" in the face of wider uncertainty.

Tata Motors shares dropped by 3.8% on Monday.