British luxury carmaker Jaguar Land Rover (JLR) sharply lowered its earnings outlook for the next financial year, citing growing uncertainty in the global automotive market and new US tariffs that threaten to disrupt international sales.On Monday, JLR revised its earnings before interest and taxes (EBIT) margin forecast for fiscal 2026 to between 5% and 7%, down from its earlier target of 10%. The forecast is also below the 8.5% margin it reported for the year ended March 31. In another blow, the company also expected the free cash flow to hover near zero in the same period.The announcement sent shares of its parent company, Tata Motors, tumbling by as much as 5.2% in early trade, which ended the day at 3.56% on the BSE.Jaguar Land Rover (JLR) has been hit by a downgrade as it deals with the impact of a new 25% tariff imposed by the US administration on all foreign-made vehicles. The United States, which makes up over a quarter of JLR’s global sales, is a key market for the company. In response, JLR has temporarily halted shipments to the US and is now diverting its stock to other international markets in a bid to safeguard profit margins.The maker of the ‘Defender’ SUV said it is redirecting available units to “more accessible markets” in an effort to maximise profitability.JLR said it remains in dialogue with both the British and American governments over a bilateral trade agreement signed in May, which allows the UK to export up to 100,000 cars annually to the US at a lower 10% tariff. While JLR’s Range Rover line is produced in the UK and eligible under this deal, its best-selling Defender SUV is made in Slovakia, part of the European Union, which does not yet benefit from the agreement.To soften the blow of the higher import costs, the company is also evaluating pricing strategies in the US market.Analysts noted that while Jaguar Land Rover’s high-end clientele might be less sensitive to price increases, the lack of US-based manufacturing makes Tata Motors one of the most vulnerable Indian automakers in the face of rising American import duties.In contrast, several of JLR’s key competitors, including Mercedes-Benz and BMW, have well-established manufacturing bases in the United States, giving them a significant cost advantage under the new tariff regime.