Jaguar Land Rover hangs exports to us while a tariff is spreading

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

Jaguar Land Rover has suspended all car shipments to the United States for a month, as the disruption of supply chains in global car manufacturers is spread in response to the tariff of US President Donald Trump on vehicle imports.

The British auto industry has stopped shipments, as it works to respond in the long term on the 25 percent tariffs on vehicle imports that apply all cars collected outside the United States with partial exemptions for Mexico and Canada.

“The United States of America is an important market for the luxury brands of JLR. We are working to address the new trade conditions with our business partners, we create our short -term measures, including the stopping of shipping in April,” he said in a statement.

This step by the British auto company confirms the chaos launched by the Trump tariff for the global auto industry that built complex supply chains backed by free trade.

Chrysler’s decision and a jeep maker follow Stelantis On Friday to subjugate 900 employees in the United States after a temporary stoppage of production in Mexico and Canada.

Nissan in Japan is also looking to reformulate supply chains in response to the definitions.

On Friday, the Japanese group said it would not require any new American orders for two models of the luxury Infiniti group that was built in Mexico. She also mentioned that she is planning to keep bouts in a production line on the SMYRNA factory in Tennessee, after he said earlier that it would move to one transformation to save costs.

Nissan has developed plans to change some of the darkest SUV production from its local factory in Kyushu to Samirna, according to a person familiar with Nissan’s plans. Nissan refused to comment.

The attempt to reshape the car supply chains comes after the stock markets are exposed Brutal This week with the S&P 500 loss 10 percent in two days.

The impact of definitions on the auto industry can be huge – and it becomes more severe if 25 percent of the customs tariff enters a wide range of imported parts on May 3, adding a tax on the final cars imposed on Thursday.

UBS analysts estimated that two combined customs tariff groups may cost Japanese car companies ¥ 3.6tn ($ 24.7 billion).

Nissan’s production of Japan will be a political sensor due to the presence of increasing strains felt by thousands of young and medium -sized suppliers, whose profit margins have already been pressured by pressure through high wages.

Likewise, JLR stops to concerns about the future health of the British auto industry, as the group exports 31 percent of about 400,000 vehicles sold annually to North America.

Toyota, the world’s largest auto industry company, has indicated that it intends to reduce manufacturing costs in response to tariffs in an attempt to avoid high consumer prices.

The Japanese auto industry company was distinguished by Trump in his speech revealed by “mutual” definitions. He said that Toyota sells 1 million foreign cars every year in the United States. The US President said that Japan was “the worst of the violator” and “in many cases, the friend is worse than the enemy in terms of trade.”

Analysts say that many Japanese auto makers have already factories in the United States and may be cautious about collecting huge investment packages, given concerns about high costs and the availability of employment in the United States.

Hyundai from South Korea announced last month a US investment package plan, totaling 21 billion dollars, but this did not lead to exemptions or sculptures for torrents.