With his radical customs policy, US President Donald Trump asks the globalized production of vehicles. Now the first car manufacturers attract the consequences.
The British vehicle manufacturer Jaguar Land Rover (JLR) temporarily stopped supplying its vehicles that were produced to the United States in Great Britain. As the “Guardian” reported, the company wants to check how the effects of the rates imposed by Trump can be reduced at the input.
Jaguar Land Rover has consequences for Trump’s rates
Jaguar Land Rover responds to the immediate consequences of the rates with the break in delivery. In a statement on Saturday, a company spokesperson said: “The US is an important market for the Luxury brands of JLR. While we are working on clarifying the new trade conditions with our business partners, we take a few short -term measures, including an episode in April, while we develop our medium to long -term plans,” said it in a declaration of the company. According to “Times”, JLR currently has sufficient inventory in the United States, but the future of American deliveries is uncertain given the increased import costs.
Jaguar Land Rover, one of the highest manufacturers of cars in Britain, sells around 400,000 vehicles every year, including large SUVs. Almost a quarter of the total turnover does not apply to the American market.
Nissan also takes first measures
In addition to Jaguar Land Rover, Nissan also responded to the new American rates. The Japanese manufacturer said that no new US orders are accepted for the Infiniti SUVS QX50 and QX55 made in Mexico. The vehicles are produced in the Compas factory in Aguascalientes, which Nissan cooperates with Mercedes-Benz. A spokesperson for the company confirmed on Saturday that production will continue for other markets.
The measures are part of a series of international reactions to the American customs policy. Trump drastically increased the import duties for foreign cars on 3 April. Instead of 2.5 percent as before, 25 percent is now for cars. Vehicle parts are also influenced. The measure is not only European and Asian manufacturers, but also American car manufacturers with international supply chains.
Trump calls on American citizens to persist
In the meantime, Trump called on the population of his country with a view to the massive turbulence because of his customs policy. “Stay strong, it will not be easy, but the end result will be historic,” Trump wrote on Saturday on his online platform Truth Social. His government brings jobs and companies back to the country like never before, and there are already investments in trillion value.
Fear of trade war
Trump’s aggressive customs policy has fueled the fear of a large trade war with serious consequences for companies and consumers worldwide. The fears of a new significant increase in consumer prices and a weakening of their own economy to recession also grow in the United States. In recent days, the stock market courses have fallen around the world.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
