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HomeMarket NewsTata Motors shares in focus after US-European Union trade deal; Here's why its significant
Tata Motors' JLR had temporarily paused shipments to the US in April in wake of the US reciprocal tariffs, but resumed them in May.
Shares of passenger and commercial vehicle manufacturer Tata Motors Ltd. will be in focus on Monday, July 28, after the US and European Union announced a trade deal overnight.
The European Union will be paying a 15% tariff for most goods exported to the US, including cars. The earlier levy on automobiles stood at 27.5%, and US President Donald Trump had threatened a 30% tariff on the bloc in case a deal did not take place before August 1.
This is significant for Tata Motors, particularly for its subsidiary Jaguar Land Rover, for which, the US is a major market.
UK-based Jaguar Land Rover (JLR) already has a 10% tariff on exports from the UK, as a deal with the US was already signed earlier during the G7 summit. The UK is not longer a part of the European Union.
However, Slovakia, which is a part of the 27-nation bloc, is a major manufacturing unit for JLR and majority of its exports to the US are from this plant.
JLR had temporarily paused shipments to the US in April in wake of the US reciprocal tariffs, but resumed them in May. Although the company does not specify the number of cars it sent from Slovakia to the US, global wholesale volumes in 2024, including that from the UK and Slovakia had increased by 22% in 2024.
The Slovakia plant is known for producing the Defender model for JLR.
Shares of Tata Motors had ended 1.8% lower on Friday at ₹687.55. The stock has remained absolutely flat in the last one month, while declining 8.2% on a year-to-date basis so far.
