USA-based automobile manufacturer Jaguar Land Rover has restarted selling automobiles within the United States.
New Article:
Jaguar Land Rover Resumes U.S. Shipments, Absorbs Higher Costs
After halting deliveries back in April '21, Jaguar Land Rover (JLR) has resumed shipping vehicles to America – but not without absorbing additional costs. The Times reports that customers stateside may have to dig deeper into their wallets for these luxury rides.
On April 6 '21, JLR announced halting shipments to the U.S. in order to evaluate new trading conditions with partners amid ongoing trade disputes. As a significant player in the American luxury car market, the company exported nearly a quarter of its 400,000 annual sales to the U.S., generating substantial profits.
Fast forward to April 3, 2023 – the US slapped a hefty 25% tariff on vehicle imports from the UK, along with related components. Good news came earlier this year, as a U.S.-UK agreement shrank the tariff for the first 100,000 annual imports to a more manageable 10%. However, any vehicles exceeding that threshold would still get hit with the 25% duty.
JLR hasn't commented specifically on the price hikes for its U.S. customers, but The Times suggests it's a possibility. Despite the costs, JLR seems to be banking on the American market and has forged ahead with shipments. Their commitment to the U.S. market remains strong, given the profitability of this key demographic.
With this latest agreement between the U.S. and the U.K., there's hope that it could pave the way for future trade deals, potentially stabilizing JLR's exports in the long run. The company will likely need to adjust pricing strategies to mitigate the impact of tariffs while maintaining its position in the competitive U.S. luxury car market.
- Jaguar Land Rover (JLR) has resumed shipping vehicles to America, facing increased costs due to tariffs on vehicle imports from the UK, which may prompt price hikes for their U.S. customers.
- JLR remains committed to the American market despite absorbing higher costs, indicative of their belief in the profitability of this key demographic, and will likely need to adjust pricing strategies to mitigate the impact of tariffs and maintain their competitive edge.
