Jaguar Land Rover is halting shipments to the United States as companies begin to feel the immediate effects of new US tariffs, announced by President Donald Trump earlier this week. The British carmaker confirmed it would "pause" exports while it works to "address the new trading terms."

The news follows the introduction of a 25% levy on all foreign cars imported into the US and a wider 10% tariff on global imports, which came into force on Saturday. A JLR spokesperson said: "The USA is an important market for JLR's luxury brands. As we work to address the new trading terms with our business partners, we are taking some short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans."

The statement points to longer-term adjustments, suggesting the company is not treating the tariffs as a short-term disruption.

The announcement came as financial markets reacted sharply to the tariffs.

The FTSE 100 recorded its worst day of trading since the start of the pandemic, with almost every stock in the index falling.

Rolls-Royce, major banks and mining firms were among the biggest losers.

Markets on Wall Street also dropped in the aftermath of the White House announcement on Wednesday, amid concerns the measures could lead to wider economic fallout.

Sir Keir Starmer is understood to be holding a series of calls with international leaders over the weekend. On Friday he spoke to the prime ministers of Australia and Italy, with all three reportedly agreeing that a trade war would be "extremely damaging".

A Downing Street spokesperson said: "The Prime Minister has been clear the UK’s response will be guided by the national interest. Officials will calmly continue with our preparatory work, rather than rush to retaliate."

They added: "He discussed this approach with both leaders, acknowledging that while the global economic landscape has shifted this week, it has been clear for a long time that like-minded countries must maintain strong relationships and dialogue to ensure our mutual security and maintain economic stability."