(Reuters) -British luxury carmaker Jaguar Land Rover reported a 10.7% drop in first-quarter sales, its Indian parent Tata Motors (NYSE: TTM ) said on Monday, hit by a temporary pause in shipments to the U.S and a wind-down of the Jaguar brand’s legacy models.

JLR, known for its Range Rover sport utility vehicles, sold 87,286 units to dealers worldwide in the April-June quarter, down from 97,755 units a year ago.

In April, JLR paused exports of its British-made cars to the U.S., one of its biggest growth markets, after President Donald Trump slapped a 25% duty on all foreign-made vehicles sold in the world’s second-largest car market.

JLR has no manufacturing presence in the U.S. Its ’Range Rover’ lineup is manufactured in Britain – whose cars are subject to a 10% levy – while the top-selling ’Defender’ SUVs are made in Slovakia, subject to a higher 25% levy.

The steep decline in a key market for JLR comes as it navigates weak demand in China and slowing sales in Europe, prompting it to spend more to boost volumes.

Sales in top market North America - which accounts for one third of its sales - dropped 12.2% in the first quarter.

Jaguar’s luxury sedans, SUVs and sports cars sales declined nearly 72% to a mere 2,339 units as part of a years-long phase-out, before it morphs into a fully-electric brand in 2026.

Excluding Jaguar’s performance, JLR sales were down 5.1%.

JLR is one of Britain’s top car exporters and its sales accounts for two-thirds of parent Tata Motors’ revenue.

JLR and Tata Motors will report their first-quarter earnings in August.

The company in June cut its target for earnings margin before interest and taxes for the fiscal year 2026 to 5%-7%, from 10%, amid uncertainty in the global auto industry spurred by U.S. tariffs.