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Jaguar Land Rover has made the decision to halt all shipments to the US in order to deal with the new trading terms that have been implemented following the recent tariffs. The US President, Donald Trump, had imposed a 25% levy on car imports, causing disruption in global supply chains. The UK’s car industry relies heavily on the US as its second largest export market, after the European Union.
A spokesperson for Jaguar Land Rover stated that the company is taking short-term actions, including pausing shipments in April, as they work on developing their plans for the future. The luxury car manufacturer, based in Coventry with sites also in Solihull and Wolverhampton, considers the US market to be crucial for its brands. The UK has been exporting more cars to the US than any other good, with a trade worth £8.3bn in a 12-month period leading up to the end of the third quarter of 2024.
Initial tariffs on cars came into effect on April 3rd, with additional import taxes on auto parts scheduled to follow next month. Alongside these measures, a 10% tariff will be imposed on all other UK imports, with higher rates for some major economies. The global stock markets have been experiencing significant losses as companies struggle to adapt to the new trading landscape. The FTSE 100, which monitors the performance of the top 100 firms listed on the London Stock Exchange, saw a sharp decline of 4.9% on Friday, the most significant drop since the beginning of the pandemic.
Prime Minister Sir Keir Starmer has emphasized a calm approach to the trade tariffs, ruling out any hasty actions that could lead to a trade war. He has engaged in discussions with European leaders, including French President Emmanuel Macron, to explore potential responses to the trade challenges posed by the US. While acknowledging the inevitable impact on the UK economy, the government is considering retaliatory measures while continuing negotiations with US officials for a trade deal that could alleviate the tariff burden. Sir Keir’s talks with European counterparts are aimed at forming a united front in response to the trade policies of the White House
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