JLR halts US shipments after Trump slaps 25% import tariff
What's the story
Jaguar Land Rover (JLR), Tata Motors' luxury vehicle division, has opted to temporarily halt its US shipments of British-manufactured cars.
The move comes as a strategic response to the 25% import tariffs recently imposed by President Donald Trump.
The month-long pause will allow JLR to assess the impact of the tariffs and explore potential strategies for mitigation, according to The Times.
Strategy
JLR's response to Trump's trade war
As one of Britain's largest car manufacturers, JLR is taking this step from Monday to learn how to cope with the financial burden of the US President's new import tariff.
The company employs 38,000 people across Britain and is now evaluating the impact of Trump's trade war on its operations.
Reportedly, JLR has a two-month supply of cars already in America not subject to the new tariffs.
Industry impact
US tariffs prompt global car manufacturers to rethink strategies
The US government's introduction of a 25% tariff on imported cars has brought about major changes in the automotive industry.
JLR's decision to halt US shipments is just one of the many ways this policy is impacting global car manufacturers.
Other automakers are also rethinking their business strategies in light of these new trading terms, underlining the far-reaching impact of Trump's trade war on the automotive sector.
Company statement
Global appeal and resilience amid changing market conditions
Ahead of the tariff coming into effect, JLR released a statement on its website acknowledging the global appeal of its luxury brands and expressing confidence in its business resilience.
The company said, "Our luxury brands have global appeal and our business is resilient, accustomed to changing market conditions."
It stressed that its priorities are "now delivering for our clients around the world and addressing these new US trading terms."
Market strategy
Sales distribution and future considerations
As per its latest annual report, nearly a quarter of JLR's 430,000 vehicle sales in the 12 months ending March 2024 were in North America.
The company is now weighing if it can raise prices for American consumers while also looking at ways to increase sales in other markets outside the US.
It may also take cost-saving measures like reducing marketing expenses and cutting back on promotional material.