(Reuters) -British luxury carmaker Jaguar Land Rover (JLR) reported a 10.7% drop in first-quarter sales, its Indian parent Tata Motors said on Monday, following a temporary pause in shipments to the U.S.

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

JLR is one of Britain's top car exporters and its sales accounts for two-thirds of parent Tata Motors' revenue. It also attributed the lower sales to a planned phase-out of its legacy Jaguar models.

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

(Reporting by Nandan Mandayam in Bengaluru; Editing by Arun Koyyur)