Chancellor Rachel Reeves has offered reassurance to workers at Jaguar Land Rover (JLR), pledging that Labour will "have their back" amid the ongoing fallout from Trump’s tariffs on British car imports to the United States.

During a visit to JLR’s headquarters in Coventry today, Reeves addressed concerns over the 25% tariff imposed by the Trump administration earlier this month.

The tariff, which came into effect on 3 April 2025, has forced JLR to temporarily halt US shipments for a month while the company assesses the financial impact.

Support for Automotive Workers

Reeves, addressing a group of around 200 workers, acknowledged the anxiety caused by the trade dispute.
"We have got your back," she told the employees.
"It’s completely unacceptable that hardworking automotive workers are being left in limbo because of decisions made halfway across the world. Labour is committed to securing a fair deal that protects jobs and industry here in the UK."

Reeves promised that, if Labour were in government, it would work urgently to negotiate a tariff exemption for British car manufacturers, stressing the importance of maintaining trade stability with the US.
"We will fight for a balanced agreement that supports British jobs and ensures our automotive sector remains competitive on the global stage," she said.

Economic Impact of Tariffs

Jaguar Land Rover, owned by India’s Tata Motors, has been significantly impacted as the US is one of its largest export markets, accounting for around 25% of annual sales. The tariff has raised concerns about potential job losses and the long-term viability of UK car exports.

Reeves met with senior JLR management to discuss strategies for mitigating the tariff’s impact. Options on the table include raising prices in the US market or increasing production at JLR’s plants outside the UK.

A Broader Industrial Strategy

The Shadow Chancellor also outlined Labour’s vision for a more resilient automotive sector, which includes:

• Investing in green vehicle manufacturing to reduce reliance on exports.
• Securing tariff-free access to major markets, including the US and EU.
• Supporting innovation in electric and hydrogen vehicle technology.

Reeves stated:
"Our automotive industry has a bright future if we make the right choices now. That means securing fair trade agreements, investing in innovation, and protecting the skilled workforce that makes British cars world-renowned."

Local Response

JLR workers expressed relief at hearing support from a high-profile politician.
One worker said: "It’s good to know we’re not being forgotten. We need political backing to keep jobs here."

Reeves’ visit follows criticism of the government’s response to the tariff, with Prime Minister Rishi Sunak accused of not doing enough to protect UK car manufacturers.

The Society of Motor Manufacturers and Traders (SMMT) has called on the government to urgently address the trade impasse, warning that prolonged disruption could cost thousands of jobs.

What’s Next?

With Labour promising to prioritise automotive industry protection, Reeves’ visit underscores the political importance of safeguarding one of the UK’s key manufacturing sectors. As the US tariffs continue to disrupt JLR’s operations, the pressure is mounting on the government to negotiate a resolution that secures the future of British car exports.

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