London (AP) – The British manufacturer of Jaguar and Land Rover Cars interrupts shipments in the United States while working to mitigate the impact of a tax of 25% on imports of vehicles imposed by the Trump administration.
Jaguar Land Rover Automotive, one of the largest car manufacturers in Great Britain, said on Saturday that the break would take place this month.
“The United States is an important market for JLR luxury brands,” the company said in a statement. “While we work to resolve new commercial terms with Out Business Partners, we take short-term actions, including an expedition break in April, while we are developing our mid-long plans.”
The British automotive industry should be touched by new prices, which occur at a time when British car manufacturers have trouble making a declining request at home and reorganizing their factories for the transition to electric vehicles.
“The industry is already confronted with several opposite winds and this announcement arrives at the worst time possible,” said Mike Hawes, director general of the Society of Motor Manufacturers and Traders of the United Kingdom last week. “SMMT is in constant contact with the government and will seek commercial discussions to speed up because we must obtain a path to follow which supports jobs and economic growth on both sides of the Atlantic.”
The number of cars made in the United Kingdom dropped from 13.9% to 779,584 vehicles last year, according to the SMMT. More than 77% of these vehicles were intended for the export market.
British car manufacturers have already taken measures to reduce the immediate impact of prices by building stocks in the United States before the increase takes effect.
SMMT figures show that exports to the United States jumped 38.5% compared to the previous year in December, 12.4% in January and 34.6% in February.
“It was manufacturers like JLR who tried to get ahead of the game in terms of storage of the United States before the implementation of prices,” said David Bailey, professor of commercial economics at the University of Birmingham.
British car manufacturers have sent 8.3 billion pounds ($ 10.7 billion) of vehicles in the United States over the 12 months until September, making the largest export of goods to the United States, according to government statistics.
But cars constitute a relatively low part of the global trade between Great Britain and the United States, which is strongly balanced towards services.
Great Britain exported 179.4 billion pounds (231.2 billion dollars) of goods and services in the United States in the year until September, the services representing 68.2% of this figure.
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