Jaguar Land Rover suspends exports to US as tariff fallout spreads

MT HANNACH
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Jaguar Land Rover has suspended all car expeditions to the United States for a month, as the disruption of the supply chains for world car manufacturers is quickly spread in response to the punitive prices of US President Donald Trump on vehicle imports.

The British automaker has interrupted shipments because it leads to a longer -term response to 25% prices on vehicle imports. The duty applies to all cars assembled outside the United States with partial exemptions for Mexico and Canada.

“The United States is an important market for JLR luxury brands. While we are working to resolve new commercial terms with our business partners, we promulgate our short-term actions, including a shipping break in April,” he said in a statement.

The producer of the Range Rover and the Land Rover Defender, which belongs to Tata Motors of India, is very exposed to prices because it generates almost a quarter of its sales in the United States, but has no local manufacturing capacity in the United States.

People informed the issue said that JLR had previously planned to build a plant in the United States, but chose to build another factory in Slovakia before Trump’s first presidency.

The decision of the British automotive company underlines the chaos that Trump’s prices are unleashed on a global automotive industry which has constituted complex supply chains supported by free trade.

He follows the decision of Chrysler and Jeep Maker Stelllantis Friday, at 900 employees in the United States after putting a temporary break on production in Mexico and Canada.

The director general of the Swedish car manufacturer Volvo said Thursday that he was planning to add the production of another car model to his American factory in South Carolina, which has 150,000 cars per year.

The group, owned by Geely de China, recently brought back his former boss HÃ¥kan Samuelssson to sail in the geopolitical challenges caused by the World Tariff War.

The Japanese Nissan also seeks to rework its supply chains in response to prices.

On Friday, the Japanese group said that it would not take any new American order from two models from its Infiniti luxury range built in Mexico. He also said that he planned to maintain two quarters of work on a production chain on his Smyrna factory in Tennessee, after declaring earlier that he was going to change the cost to reduce costs.

Nissan has drawn up plans to move a production of the sowing SUV from his domestic plant to Kyushu in Smyrna, according to a person familiar with the plans of Nissan. Nissan refused to comment.

The attempt to reshape the car supply chains comes after the stock markets underwent a brutal This week, the S&P 500 losing 10% in two days.

The impact of prices on the automotive industry could be enormous – and become even more serious if prices of 25% on a wide variety of imported parts come into force on May 3, adding to the tax on finished cars imposed on Thursday.

Wedbush analysts believe that prices could reduce new car purchases up to 20% and increase the prices of a typical car to an American consumer from $ 5,000 to $ 10,000.

Nissan shifting the production of Japan will be politically sensitive since assembly strains felt by thousands of small and medium -sized car suppliers, whose beneficiary margins have already been submitted by the increase in salary costs.

Likewise, JLR’s break will add concerns about the future health of the British cars industry, where approximately one in six ships goes to the United States.

Toyota, the largest car manufacturer in the world, said suppliers that she intended to reduce manufacturing costs in response to prices in order to avoid increasing consumer prices.

The Japanese car manufacturer was distinguished by Trump in his speech revealing the “reciprocal” prices. He said Toyota sells cars made abroad every year in the United States. Japan was the “worst offender” and “in many cases, the friend is worse than the enemy in terms of trade,” said the American president.

Many Japanese car manufacturers already have factories in the United States and can be wary of assembling enormous investment packages, according to analysts, given concerns about high costs and the availability of labor in the United States.

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