Shares of Tata Motors Ltd. fell over 9% on Monday, April 7, after its subsidiary, Jaguar Land Rover Ltd. has announced that it will be pausing shipments to the US for the month of April, in response to the tariffs imposed by US President Donald Trump on imports of automobiles and auto parts into the US.

JLR last week said that it will be pausing shipments to the US for a month as it assesses the impact of the tariffs on vehicle imports.

US President Trump had imposed a 25% tariff on all auto and auto part imports into the US, which took effect last week. JLR has described the US as an “important market” for its luxury brands.

Nearly 20% of the company’s revenue came from the US market.

Along with these car import tariffs, there is also a 25% tariff on imports of steel and aluminium products into the US. The baseline 10% tariff already took effect from Saturday midnight.

Last week, Tata Motors was excluded from CLSA list of “high-conviction outperformers” and its price target was cut as well by the brokerage.

CLSA also wrote in its note that 60% of the JLR portfolio in the US is priced above $85,000 and a price increase will not impact this as consumers of this category are more brand conscious.

40% of the JLR portfolio is between $50,000 – $85,000 and a tariff will result in a 26% volume decline for this segment.

Morgan Stanley wrote that if auto tariffs remain, JLR can again go Free Cash Flow negative, and that can take the stock back down to its bear case price target of ₹416.

Out of the 34 analysts that have coverage on Tata Motors, 21 of them have a “buy” rating, eight have a “hold”, while five have a “sell” rating.

Shares of Tata Motors are down 8% in early trading on Monday at ₹565. However, the imposition of tariffs and the hit to sentiment have seen the stock go back to levels of ₹616, which is close to its 52-week low.