The manufacturer of Jaguar and Land Rover cars stated that it would stop exports to the United States after the Trump administration imposed a 25 % tariff on all car imports.
The British car maker said on Saturday that a temporary stop is a short -term procedure because it works to address the new trading conditions with its business partners. The car company added that stopping the shipments will be valid this month.
“The United States of America is an important market for JLR’s luxury brands. Since we are working to address the new trade conditions with our trading partners, we take some short -term measures including the stopping of shipping in April, and we are developing our plans from the middle of the term.”
~ Jaguar Land Rover cars.
The United States is an important market for its cars and luxury brands. According to the papers of the UK Business and Trade Ministry, cars are the best goods exported from the United Kingdom to the United States. The total export of cars in the four quarters until the end of the third quarter of 2024 was 8.3 billion pounds.
Other car makers may also stop exports
Analysts predict that other car makers will follow JLR steps and stop American exports. The imposed tariffs added more pressure on the auto industry in Britain. The demand for British cars has decreased locally and in Europe, while sales in China were declining. Moreover, British car makers fall behind in the electric car racing where the factories are obliged to fix existing machines.
Professor of Birmingham University David Billy He said The guardian, “Many cars in the UK are already operating much less than the capacity, and the definitions will be another success for the struggle industry.” He said that “the cuts in production and the loss of jobs are likely to be,” and it is believed that the number of jobs at risk due to the US tariff is reduced.
Billy believes that JLR will continue to struggle unless the auto factory in the United States is established. according to Reuters, German car makers are studying Audi, Mercedes and BMW to expand their operations in the United States. Definitions are pressuring international car makers to transfer operations to the United States, making Trump’s vision to reality.
British car makers have taken measures to reduce the impact of American definitions by increasing exports and building stocks in the previously implemented countries. According to the data of the SMMT and the SMM, car exports to the United States increased in January, and February by 38.5 %, 12.4 % and 34.6 %, respectively.
On April 3, the United Company mentioned 25 % tariffs on imported vehicles. This tariff applies to vehicles from all countries, including those covered by the USMCA agreement. On May 3, 2025, the United States will impose another 25 % tariff on all imported auto parts.
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