- Jaguar Land Rover has halted deliveries of new vehicles to the U.S. due to tariffs imposed on imported cars.
- The car manufacturer and its various brands, which belong to India's Tata Group, produces the majority of its vehicles in the UK.
- Automakers based in the UK do not have a manufacturing presence in the US, unlike their German counterparts.
Jaguar Land Rover is halting deliveries of new vehicles to the U.S. as it assesses its choices in response to the tariffs imposed by the Trump administration on imported cars and trucks, marking one of the initial noticeable impacts on international car manufacturers in April.
The UK will also face an extra 10% duty, along with another set of base tariffs being unveiled by the administration in early April.
Nevertheless, the stock of cars currently held at Jaguar and Land Rover dealerships won’t be affected by these new tariffs as long as it persists. These dealers likely possess several weeks' or even months' worth of vehicles that were delivered prior to when the tariffs became effective.
Even though there is still leftover stock before the tariff comes into play, vehicle and part prices might be impacted much earlier, which also applies to other international brands selling vehicles in the U.S. market.
One positive aspect for Jaguar is that their F-Pace SUV is the only model currently in production, making it somewhat distinctive amidst the circumstances. The car manufacturer basically phased out this model year early as part of its move towards an all-electric vehicle range. The manufacturing of the electric I-Pace came to an end towards the close of last year, just like the production of four additional models ceased at the same time.
Land Rover models On the contrary, they are still manufactured in the UK except for the Discovery and Defender models, which are assembled in Slovakia.
UK-based automobile manufacturers are particularly vulnerable to the tariff measures imposed by the Trump administration due to their absence of production facilities within the US market, unlike several German, Japanese, Swedish, and Korean automotive companies which have established manufacturing bases in America.
Manufacturing in the US market will help reduce tariffs for vehicles produced by BMW, Volkswagen, Mercedes-Benz, Toyota, Honda, Hyundai, and other companies.
The United States represents a key export destination for JLR, though it is far from being their sole market, as China also stands out as a significant consumer of their products.
"While being levied at a lower rate compared to other prominent economic powers, this remains a highly disheartening and possibly detrimental policy that could impact various automotive goods," stated Mike Hawes, CEO of the UK’s Society of Motor Manufacturers and Traders (SMMT).
The most significant impact on our automotive industry will probably be experienced by entities subject to a 25% tariff in addition to current duties, which includes automobile makers as well as the majority of auto parts suppliers starting from May 3rd.
The British government stated it would try to negotiate an agreement with the U.S., although specifics about the extent or schedule were not revealed. As European nations grappled with understanding this altered trans-Atlantic trade environment, they continued to process these developments.
Sharing similar circumstances with Jaguar Land Rover are Mini, McLaren, Aston Martin, Lotus, Rolls-Royce, and Bentley.
"We remain hopeful that negotiations for an agreement between the UK and US could lead to reduced tariffs or their complete removal. We believe the government is diligently working towards securing such a pact. Given that the sector is currently grappling with numerous challenges, this timing of the announcement couldn’t be worse," Hawes noted additionally.
Is the 25% tariff on imported vehicles going to be a long-lasting issue, or Is this just a passing stage in U.S.-Europe trade relations? Please comment below.
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