British luxury carmaker Jaguar Land Rover (JLR) has decided to temporarily stop shipments in protest against import duties in the US.
British luxury carmaker Jaguar Land Rover (JLR) has decided to temporarily stop the supply of its vehicles in protest against the 25% import duty in the US. The move comes due to the new trade rules recently implemented by the US, which have affected the global auto industry and increased trade tensions.
US new import duty:
US President Donald Trump’s government has imposed an additional duty of 25% on cars and 10% on auto parts from April 3. Along with this, high rates have also been set on goods imported from many other countries including Britain. These duties have been imposed with the aim of promoting American industries, but these rules have soured global trade relations.
Why did JLR stop shipments?
Jaguar Land Rover has made it clear that it is taking some short-term steps in the month of April, including stopping the supply of cars to the US. The company will use this time to develop its medium and long-term strategies. The US is the second-largest market for JLR after Europe, and its exports were around 8.3 billion pounds by the third quarter of 2024. The decision to stop this shipment is a sign of a major economic challenge for the company.
Impact on global markets:
This new policy has led to a 4.9% decline in Britain’s FTSE 100 index, which is believed to be the biggest decline since the Kovid-19 pandemic. Heavy losses have also been seen in the stock markets of Germany and France. Apart from this, this decision in global trade can also lead to economic recession in other countries.
Reaction of Britain and Europe:
British Prime Minister Sir Keir Starmer has said that Britain does not intend to get involved in a trade war, but will continue to negotiate a trade deal with the US. French President Emmanuel Macron has also agreed with the view that “trade war cannot be in anybody’s interest” and it needs to be resolved peacefully.
Further strategy and prospects:
Many companies, including Jaguar Land Rover, are now rethinking their strategies in the US market. Also, the UK government is also considering possible retaliatory measures on this issue. Trade talks are going on between the European Union and the US, which may result in the relaxation of duties. The situation in the global market may become normal after the issue is resolved, but the situation still remains uncertain.
This trade war can become a major crisis for the global economy and especially the auto industry, which may affect relations with other countries in the future.
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