Jaguar Land Rover will now halt vehicle shipments to the U.S. in the face of an unforeseen shift in U.S trade policy. After recent changes in global trade that the Trump administration slapped a 25% import tax on all foreign cars, manufacturers have responded by drastically changing their plans to be more responsive.
British automaker Jaguar Land Rover is an important market for the U.S. — No. 2 only to Europe in terms of sales and this suspension is more than a small hiccup of its operations. The company said that it will use the remainder of April to re-evaluate its strategy and look for ways to get through this new trade environment, as quoted by Jaguar Land Rover.
“More info: We have paused supply while we assess the long term implications of these changes on our strategic plans”
It comes as the UK auto industry is facing a grim time with the US being the biggest buyer of UK cars. In addition official figures show car exports up $0.8bn to the U.S. over the last year up until October 2024.
Keep your belts on because this tariff increase is just the start, more to come on car parts and a 10% tax on most UK imports in the next month, with even higher tariffs on selected products from major economies.
Negative reaction on financial market as measured by a fall of more than 4% to FTSE 100 index (the biggest point drop since shortly after the early Covid phase. European markets delivered huge losses as well, especially in Germany and Franceshowing increasing worry by traders and investors about systemic market disruption.
Prime Minister Keir Starmer has so far taken a low-key approach — reiterating that the UK is not looking for a trade war, but is looking at all options. During his call on French President Emmanuel Macron over the weekend, both leaders said an escalation is damaging for no one and recommended diplomacy as an essential.
Starmer claimed, “No one wins in the game of trade wars but we must leave every door open.
Meanwhile, in the shadows is an attempt by UK officials considering how the U.S. response will shape up if Washington’s moves remain unchanged.
Jaguar Land Rover shipping freeze could be temporary but calls for global business to acclimatize right away! More tariffs are on the horizon!
Whether it leads to an end is anyone’s guess with the first glimpse at what will keep doubling down. However, not surprisingly the auto industry is being forced to confront a broader geopolitical struggle.
Key Points Recap:
JLR — U.S. Exports Harihaft 25% car tariff
–UK Auto Exports to U.S recently worth £8 Billion+
->Further tariffs to hit parts, broader increases on the way
– FTSE 100 most significant decline in index history at pandemic onset
-PM Starmer prefer diplomacy while willing to look at all options; Got Downing Street to be discreet
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Germany takes the lead in resisting Trump’s car tariffs, declaring it ‘will not back down.
