British luxury carmaker Jaguar Land Rover (JLR) said today that it will not deliver its vehicles to the United States (US) from this month as it works to mitigate the impact of a new 25 percent tariff on vehicle imports imposed this week by the administration of US President Donald Trump.
The British car industry is expected to be hit hard by the new tariffs, and they are already struggling with falling demand at home and how to transition to electric vehicle production.
Last year, the number of cars produced in the UK fell by 13,9 percent to 779.584. More than 77 percent of the vehicles produced were intended for export.
British carmakers have already taken steps to cushion the short-term impact of the new tariffs by stockpiling in the US before the tariffs come into effect. That's why data from the UK's Society of Motor Manufacturers and Traders (SMMT) shows that exports to the US jumped 38,5% in December compared to the same month a year earlier, 12,4% in January and 34,6% in February.
British carmakers shipped vehicles worth 8,3 billion pounds (9,7 billion euros) to the United States in the year to September, making cars the largest export item to the United States.
But cars make up a relatively small part of total trade between the UK and the US, which is largely services-driven. Britain exported £179,4 billion (€210 billion) of goods and services to the US in the year to September, with services accounting for 68,2 percent of that figure.
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