First Volkswagen withdrew, and now the JRL group is following suit and stopping all exports to the US after the president imposed a 25 percent tariff on all foreign cars.
A new 25 percent import tariff is causing problems for car manufacturers. The tariff applies to passenger cars imported into the United States. Jaguar Land Rover (JLR) is now responding to Donald Trump's new rules.
They are temporarily halting deliveries of cars like Land Rover and Range Rover to the US market. The halt applies for the month of April.
Volkswagen has also reacted quickly. The automaker is currently holding back new cars at U.S. import ports. It also plans to add a surcharge to the price of its cars.
The new 25 percent tariff imposed by Donald Trump this week is causing great uncertainty among many European car manufacturers.
The US is a key market for Jaguar Land Rover's luxury cars. Last year, JLR sold 95,000 cars in the US, accounting for a fifth of its total production.
JLR and VW react to new US tariffs
JLR has issued a statement about the situation, explaining the reasons for the temporary pause in deliveries.
"The US is an important market for JLR's luxury brands," JLR said earlier.
– While we work to manage the new trading conditions with our business partners, we are implementing our short-term initiatives.
The measures include a supply pause in April, while JLR develops plans for the medium and long term.
The new US tariffs are hitting the British car industry hard. The industry was already under pressure for other reasons.
Other British luxury brands such as Bentley and Aston Martin are also dependent on sales in the US. They sell a large portion of their production on the American market.
British car industry hit hard
For Bentley and Aston Martin, moving production is not an obvious solution. They produce relatively few cars.
Therefore, it is not profitable for them to move production to the US. They must therefore find other ways to deal with the new tariffs.
The situation illustrates the challenges that global trade policy can create. The automotive industry is particularly vulnerable to tariff changes. This is due to the complex global supply chains.
Other automakers are also considering their options. Volvo Cars has previously expressed an intention to move production to the United States, CEO Håkan Samuelsson said earlier this week.
It is not yet known how the situation will develop in the longer term. The coming months will show how car manufacturers adapt to the new conditions.
The situation creates uncertainty for several European car brands. It will be interesting to follow the development for the British manufacturers in particular. Read more about Jaguar Land Rover , Range Rover and other exciting car news on Boosted.dk.
