LONDON, April 5 (Xinhua) -- British automaker Jaguar Land Rover (JLR) will temporarily suspend shipments of its vehicles to the United States for one month in response to a 25 percent tariff imposed by the U.S. government, The Times reported Saturday.
The move is aimed at evaluating the financial impact of the trade measure and formulating strategies to mitigate the increased costs, the report said.
JLR is a major player in the British automotive industry, exporting nearly 100,000 vehicles annually to the U.S., approximately a quarter of its total global sales. With 38,000 employees in Britain, JLR is particularly exposed to the new tariffs, as the U.S. is its largest single market, generating 6.5 billion British pounds (8.4 billion U.S. dollars) in revenue during the last fiscal year.
The suspension will take effect on Monday. Although JLR reportedly maintains a two-month inventory in the U.S. that remains unaffected by the new tariffs, the company is actively considering measures such as price increases for American consumers, cost-cutting initiatives, and redirecting sales efforts to alternative international markets, according to the report.
Analysts from the Institute for Public Policy Research have warned that prolonged tariff exposure could jeopardize up to 25,000 jobs, particularly in the West Midlands, which is home to a dense supply chain network producing steel, plastics, fabrics, and engine parts.
The U.S. is the second-largest market for British-made cars after the European Union, accounting for nearly 20 percent of total vehicle exports, according to data from the Society of Motor Manufacturers and Traders (SMMT).
JLR said in a statement released on Wednesday: "Our priorities now are delivering for our clients around the world and addressing these new U.S. trading terms." (1 British pound = 1.29 U.S. dollar) Enditem
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