Jaguar Land Rover halts US shipments amid trump tariff row
Jaguar Land Rover is suspending car deliveries to the United States for the entire month of April, the company announced on Saturday. This decision comes in response to the tariffs that US President Donald Trump has imposed on the automotive sector, with imports to America subject to a 25 percent tax.
The car manufacturer Jaguar Land Rover (JLR), owned by the Indian conglomerate Tata Motors, confirmed that it will halt deliveries of its vehicles to the United States in April. This action is a reaction to the new tariffs introduced by President Trump affecting the automotive sector.
JLR has stated that it is collaborating with business partners to formulate an appropriate response to the imposed tariffs. The suspension of deliveries is a short-term measure. The company emphasised that work is underway on medium- and long-term strategies aimed at minimising the impact of the new tariffs.
Importance of the American market
The United States is a crucial market for JLR's luxury brands, accounting for about 25 percent of the sales of various car models produced by the company. Annually, approximately 400,000 JLR vehicles are shipped to the USA. Despite the suspension of deliveries, stocks of cars already delivered to the USA, which are not subject to the new 25 percent tariffs, will suffice for several months.
The British automotive sector, employing 200,000 people, is directly affected by the American sanctions. The United States is the second-largest importer of British cars, just behind the European Union, accounting for 20 percent of car exports from the United Kingdom.
What did Donald Trump announce?
The 25 percent tariffs on cars, light trucks, and car parts are not the only measures introduced by the White House. President Donald Trump signed an order on Wednesday regarding "reciprocal tariffs" on goods imported into the United States.
The announced US rates are designed to constitute half of the combined tariffs and non-tariff trade barriers applied by other countries. They vary depending on the country, ranging from 10 percent to 34 percent. For example, they are set at:
- 20 percent for goods from EU countries,
- 34 percent for China,
- 24 percent for Japan.
Russia was not included on the list, with the decision justified by the minimal trade exchange with that country due to sanctions imposed on the Kremlin in 2022, following Moscow's launch of a full-scale invasion of Ukraine.
