8:10 am, June 17, 2025
JLR has downgraded its profit predictions for the year with bosses pointing the finger of blame at President Donald Trump’s much-debated tariffs.
In a presentation to investors at its Gaydon HQ, the carmaker said that ‘heightened global uncertainty’ had forced it to slash its cashflow expectations.
The firm is now anticipating that its profit margins for the 12 months to the end of next March will come in at between 5% and 7% – well down on 10.7% it achieved between January and March of this year.
The figure also falls short of the 8.5% JLR recorded throughout the whole of last year as the outfit feels the impact of global trade challenges.
To make matters worse, bosses also admitted that they are now expecting the firm’s free cashflow to be close to zero throughout its current financial year.
JLR, which manufactures its Defender models in Slovakia, halted all shipments to the US in April after President Trump’s administration imposed an additional 25% tariff on car imports.
It resumed sales there last month after the UK reached an agreement to export 100,000 cars a year to the US at a reduced 10% tariff.
The company told investors it is seeking to offset tariffs by reallocating vehicles ‘to accessible markets’ and potentially increasing prices in the US.
Bosses stressed that the company is still committed to its long-term investment plans and still expects a ‘resilient financial performance’ in the face of wider uncertainty.
In a statement, the company said: ‘We are anticipating resilient financial performance in the face of macroeconomic uncertainty.
‘We remain committed to our investment plans. We will grow and protect earnings.’
Following the announcement, shares in JLR owner Tata Motors dipped by 3.8% on Monday.
