Jaguar Land Rover suspends US car deliveries due to Trump's duties
Jaguar Land Rover said it will suspend deliveries of British-made cars to the United States for a month to consider ways to mitigate the impact of President Donald Trump's 25 per cent duties. This was reported by Reuters.
Here's What We Know
The British car industry, which directly employs 200,000 people, is heavily exposed to the new duties. According to the SMMT, the United States is the second largest importer of British cars after the European Union with a share of almost 20 per cent.
Jaguar Land Rover, one of Britain's biggest manufacturers by volume, said in a statement that the United States is an important market for its luxury brands. The company sells about 400,000 Range Rover Sport, Defender and other SUV models each year, and exports to the U.S. account for nearly a quarter of sales.
The US imposed a 25% duty on imported cars and light trucks from 3 April, a day after Donald Trump announced duties on other goods from countries around the world.
Britain has said it is focused on trying to strike a trade deal with Washington.
According to the Times, Jaguar Land Rover has a couple of months' stock of cars in the US that will not be subject to the new duties.
Volkswagen's response
Earlier, it was reported that Volkswagen has temporarily halted rail shipments of cars to the U.S. from Mexico and will hold up cars arriving by sea from Europe at the port. According to WSJ, the company is considering imposing an "import levy" on vehicles subject to the 25 per cent duties.
Source: Reuters
