Jaguar Rules Out US Production Amid Tariffs

The CEO of Jaguar Land Rover stated that the company has no intention of starting car manufacturing in the US despite current trade problems affecting the automobile industry. The JLR spokesperson explained the CEO’s previous statements by indicating that US vehicle deliveries stopped in April started up again this month. President Trump implemented his “Liberation Day” policy which established 10% tariffs for UK imports but imposed higher rates on steel products and automobiles before US-UK trade agreements lessened specific trade barriers. The automotive industry faced tariff uncertainty which caused JLR along with Mercedes-Benz, Stellantis and Ford to avoid sharing profit predictions and incur $1.5 billion in additional expenses. Intel along with Adidas and Mattel implemented tariff-related price increases and reduced their revenue predictions. British Q1 growth at 0.7% depended on pre-tariff export volumes but the combination of tariffs and April’s NI tax increase threatens to reduce future growth. The current economic situation makes JLR cautious about its operations because 60% of Americans have chosen to postpone their purchases according to a Harris/Guardian poll. JLR depends on its British manufacturing base while the automotive industry faces mounting expenses and uncertain customer behavior due to Trump’s unpredictable trade policies which threaten both profitability and future planning.