British carmaker Jaguar Land Rover (JLR) will halt deliveries of its products to the US, The Times newspaper reported. The decision is for one month and comes into effect April 7.
The company, owned by India's Tata Motors since 2008, delivers around 100,000 of its cars a year to the US - a quarter of its total production. The US market is JLR's biggest, with sales reaching 30 billion pounds ($38.7 billion) a year, with 6.5 billion pounds ($8.4 billion) come from customers in the US.
JLR management is likely to be considering further steps, assessing whether the company can afford to significantly increase the prices of its products in the US, passing the burden of tariffs on to buyers. The company's stock of vehicles already delivered to the country, which do not have to pay duties, may be enough for the next few months. The response to the current situation could also be to reduce marketing costs or aggressively fight for buyers in other major markets - China, the UK and continental Europe.
On April 2, commenting on the White House decision, Jaguar Land Rover published a brief statement on its website, emphasizing that its premium car models remain attractive around the world. "Our business is resilient and accustomed to changing market conditions. "Our priorities now are to serve our customers around the world and take the necessary measures in connection with the new trading conditions in the US market," the company noted at the time.