Tata Motors shares gain as US President Trump delays 50% tariff on EU imports

Shares of Tata Motors have rebounded 21% from April lows

Shares of Tata Motors gained by a percent to Rs 727 per share on May 26, following an announcement from US President Donald Trump, who has postponed the imposition of 50 percent tariffs on European Union imports until July 9.

Back in April, President Trump had declared a 25 percent tariff on automobile imports into the US. In response to that development, Jaguar Land Rover (JLR), a subsidiary of Tata Motors, temporarily halted shipments to the US for a month. However, the situation evolved when Trump later signed an executive order that allowed some tariff relief, blending tax credits with waivers covering up to 15 percent of the value of vehicles assembled domestically.

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Earlier this month, reports confirmed that JLR has resumed its vehicle exports to the US. The US remains the second-largest market for UK-manufactured cars after the European Union—accounting for nearly 20 percent of total exports.

Jaguar Land Rover reported revenue of Rs 7.7 billion for the fourth quarter of FY25. The unit’s EBITDA margin stood at 15.3 percent. This marked JLR’s 10th consecutive profitable quarter, and the company successfully met its target of generating positive cash flow by the end of the financial year 2025.

Looking ahead, JLR has committed to investing Rs 18 billion over the next five years, supported entirely through its operating cash flows. “We continue to evaluate the impact of global challenges and will provide an update at our investor day on June 16, 2025,” the company stated.

Meanwhile, parent company Tata Motors reported its highest-ever revenue and profit before tax. The company has also achieved a key milestone, becoming debt-free on a consolidated basis in its automotive business, leading to a reduction in interest expenses.

Despite a 4 percent decline in Tata Motors’ share price so far this year, the stock has rallied 21 percent from its April lows, signaling a strong rebound.