Land Rover Defender, Photo: Land Rover
British car manufacturer Jaguar and Land Rover interrupt deliveries to the US, due to the impact of the new customs tax on vehicle imports imposed by the Trump administration.
“The US is an important market for JLR luxury brands,” the company said in a statement. “While we are working to address the new commercial conditions, we make some short -term decisions, including a break of deliveries in April, as we develop our plans in the medium and longer term,” according to CBS
The UK industry is expected to be strongly hit by the new rates, at a time when British car manufacturers are struggling with decreased demand and the need to re-operate their factories for transition to electric vehicles.
“The industry is already experiencing several turbulence, and this announcement comes at the worst possible time,” said Mike Hawes last week, executive director of the company and car traders in the UK. “SMMT is in constant contact with the government and will seek to accelerate commercial discussions, because we must ensure a way to support jobs and economic growth of both banks of the Atlantic.”
The number of cars manufactured in the UK decreased to 779,584 vehicles last year, according to SMMT. Over 77% of these vehicles were intended for the export market.
The manufacturers of car in the UK have already taken measures to reduce the immediate impact of tariffs by building stocks in the US before the increase in effect. Exports to the US increased by 38.5% compared to the previous year
British car manufacturers have delivered vehicles worth 8.3 billion pounds ($ 10.7 billion) in the US in the 12 months to September, making cars the highest export of goods to the US, according to government statistics.
But cars are a relatively small part of the general trade between the UK and the US, which is strongly dominated by services.
