Tata Motors Share Rallies Over 3 Per Cent Amid Likely Trade Deal Between US, UK

Shares of Tata Motors, the parent company of luxury car maker Jaguar Land Rover (JLR), rallied as much as 3.5 per cent on May 8, 2025 amid expectations of trade deal announcement between the US and the UK.

A New York Times report, citing people familiar with the matter, said, “Both nations have discussed lowering British tariffs on US cars and farm goods, as well as removing British taxes on US technology companies.” However, details of the agreement are not yet clear.

Earlier today, US President Donald Trump took to Truth Social to announce, “Big News Conference tomorrow morning at 10:00 A.M., The Oval Office, concerning a major trade deal with representatives of a big, and highly respected, country, the first of many!!!”

However, he did not clear out the details of it. Truth Social is a social media platform owned by Trump through his company Trump Media & Technology Group (TMTG).

Why Tata Motors Share Is Rising Today

Tata Motors’ stock opened with a gap-up and surged to hit an intraday high of Rs 704.5 per share on the NSE. At the time of filing this report, around 11:50 AM, the automaker stock was trading at Rs 697.10 apiece with gains of around 2.5 per cent.

If the deal gets through, this would be a positive development for Tata Motors’ JLR, as it derives nearly 20 per cent of the revenue from the US market.

Notably, JLR had stopped shipping its vehicles to US in April this year after US imposed 25 per cent tariffs on imports of auto and auto components from countries across the globe.

Trade Tariffs Between US And UK

Trump had earlier on April 2, 2025, announced blanket tariffs on goods and services imported from its major trading partners, including the UK. While the Trump administration had announced exorbitant tariffs on some countries, it had imposed a basic 10 per cent tariff on its long-time ally. However, later in April Trump had announced a 90-day pause on these tariffs to open window for negotiations.

India-UK FTA Deal To Boost Tata Motors

Earlier on May 6, India and the UK inked the free trade agreement (FTA), ending the three-year long negotiations. Under the agreement, tariffs on auto imports from UK will get reduced to 10 per cent from existing 100 per cent. That means, cars imported from UK will get more affordable, which is likely to boost sales of JLR.

Tata Motors Demerger

Tata Motors is also undergoing a demerger, where its commercial vehicle business will be demerged and listed separately on the exchanges. Eligible shareholders will get one share of the new company for each Tata Motors share held. Earlier on May 7, the automaker informed the exchanges that it received shareholders’ approval to demerge the business.