Tata Motors, parent company of U.K.-based Jaguar Land Rover, is reassessing its profit forecast due to the uncertainty caused by U.S. tariffs. The company made the announcement on Tuesday, joining a growing list of automakers pulling back amid shifting U.S. trade policies.
The United States is the world’s second-largest car market and JLR’s fastest-growing market, making the company’s continued success and profitability in America critical.
The U.S. and the UK signed a trade deal on May 8 that permits 100,000 vehicles to be imported into the U.S. at a 10% tariff rate. While this is significantly higher than the 2.5% rate before President Trump’s tariff increases, it’s better than the 25% rate that applies to most foreign-made vehicles.
“We are assessing our guidance in light of the recent UK-U.S. trade deal announced on May 8 and will provide an update at our investor day on June 16,” said Tata Motors.
In June, the company announced a 2026 target of 10% EBIT for the fiscal year 2026. However, despite historically making this type of public confirmation around this time of year, the company has not yet confirmed it.
Despite the looming tariffs, JLR recently reported solid financial results. For the quarter ending in March, the automaker saw a 32% increase in pretax profit, reaching $1.2 billion, marking its tenth consecutive profitable quarter. Sales volumes rose by 1.1%, driven by strong demand in North America and Europe. Full-year profit for the fiscal year ended in March grew by 15%, marking the company’s most profitable year in a decade.
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