Jaguar Land Rover (JLR) has paused shipments to the USA as it works to “address the new trading terms” following the implementation of 25% tariffs on all foreign made cars imported into the US.
“As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid to longer-term plans,” it said in a statement.
JLR’s biggest market is the US with the firm recording big increases in sales of the Solihull-built Range Rover and the Defender, which is made in Slovakia.
JLR previously said that It remained confident of maintaining sales because ”luxury brands have global appeal and [its] business is resilient, accustomed to changing market conditions".
The decision follows the signing off on 1 April from president Donald Trump of the bill that will penalise all car makers that import cars into the US market. He said the decision was made because of the imbalance of US-made car sales in other markets. An identical levy on car parts will begin in the coming months.
JLR's decision to pause exports may be partly accounted for by moves to export extra cars to the States before the tariffs were brought in. Data from the Society of Motor Manufacturers and Traders (SMMT) noted that automotive exports from the UK to the USA increased by 34.6% year-on-year in February, as a result of efforts by firms to avoid the charge.
Around eight million cars were imported into the US last year, approximately half the total sold in the market. Mexico will be the country hit hardest by the new levy, with other top markets including Canada, Germany, Japan and South Korea. The US was the UK automotive industry's second largest export market, behind the European Union.
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