Jaguar Land Rover (JLR), British luxury car manufacturer, on Saturday announced that it would temporarily stop shipment in the United States in April. The company is responding to 25% tariff Vehicle import This was imposed by the Trump administration, as it works on long -term strategies to reduce the financial impact of new trade conditions.
The company said, “USA is an important market for JLR’s luxury brands.” “As we work to address new business terms with our business partners, we are taking some short-term action in April, including a shipment break, while developing our mid-to-time-term plans.”
UK Automotive Sector As AP reported that the flaws of these tariffs are expected to feel, British car manufacturers are already struggling with the need to fall in domestic demand and to upgrade plants for infection in electric vehicles.
“The industry is already facing several headwinds, and the announcement comes at the worst time,” said Mike Hess, Society of Motor Manufacturers and CEO of Traders (SMMT). “The SMMT is in constant contact with the government and is looking for trade discussions, as we need to further secure a way that supports jobs and economic development on both sides of Atlantic.”
In 2023, the UK car production fell 13.9% to 779,584 vehicles, with luck for export in more than 77% of cars. To combat the adjacent tariff effect, UK car manufacturer, including JLR, is stocking vehicles in the US before tariff growth. This active strategy increased exports to the US by 38.5% in December, 12.4% in January and 34.6% in February.
David Bailey, a professor at a professional economics at the University of Birmingham, said, “He was a manufacturer like JLR, trying to get ahead of the game in terms of getting inventory in the US before the tariff came into force.”
Despite these efforts, new tariffs on vehicles can greatly affect the export strategy of the UK car industry. America remains an important destination for British-made vehicles Car export According to government data, the value of £ 8.3 billion ($ 10.7 billion) in 12 months through September. However, cars make a small part of the overall trade between the two countries, which dominate the services.
