Jaguar Land Rover (JLR) has warned that its profits will take a hit due to new U.S. tariffs imposed by President Donald Trump, after the company paused shipments to the American market in response to new 25% import tax hikes.
The company, which is owned by India’s Tata Motors, said it is now reallocating vehicles to other markets and may raise prices in the U.S. to soften the financial blow. The American market accounts for more than a quarter of JLR’s global sales.
JLR’s Defender SUV, made in Slovakia, falls outside the scope of a limited UK-U.S. trade deal that allows 100,000 British-made cars to enter the U.S. at a reduced 10% tariff. Without a similar agreement for EU-made vehicles, JLR faces the full 25% rate.
As a result, the company slashed its profit margin forecast from 10% to between 5% and 7% for the current year. In the last fiscal year, JLR posted a margin of 8.5%.
The news sent shares of Tata Motors down more than 5%. Analysts say the company may be partially shielded by its wealthy customer base, but JLR’s lack of U.S.-based manufacturing puts it at a competitive disadvantage compared to rivals like BMW and Mercedes-Benz.
Bentley, another British luxury carmaker, has also paused U.S. sales as it waits for clarity on tariff rules.
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Start your day informed with AnewZ Morning Brief: here are the top news stories for the 12th of December, covering the latest developments you need to know.
NATO's Secretary-General urged European leaders to step up defence efforts to prevent a war waged by Russia, that could be "on the scale of war our grandparents and great-grandparents endured".
The resignation of Bulgaria's government on Thursday (11 December) puts an end to an increasingly unpopular coalition but is likely to usher in a period of prolonged political instability on the eve of the Black Sea nation's entry into the euro zone.
The United States issued new sanctions targeting Venezuela on Thursday, imposing curbs on three nephews of President Nicolas Maduro's wife, as well as six crude oil tankers and shipping companies linked to them, as Washington ramps up pressure on Caracas.
A powerful magnitude 6.7 earthquake has struck northern Japan, triggering tsunami warnings and forcing thousands of residents to flee to higher ground.
In a dramatic Champions League clash at Baku’s Tofiq Bahramov Stadium, Qarabağ grabbed an early lead, but Ajax staged a thrilling comeback to win 4-2.
Iran is preparing to host a multilateral regional meeting next week in a bid to mediate between Afghanistan and Pakistan.
The United States issued new sanctions targeting Venezuela on Thursday, imposing curbs on three nephews of President Nicolas Maduro's wife, as well as six crude oil tankers and shipping companies linked to them, as Washington ramps up pressure on Caracas.
China’s Ministry of Foreign Affairs has urged Afghanistan and Pakistan to resolve their tensions through dialogue and engagement, as it pledged to work with the international community to help improve relations between the two countries.
The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) cut its benchmark interest rate by 25 basis points to a range of 3.50% to 3.75% following its two-day policy meeting, according to an official statement issued on Wednesday, 10 December.
China has carried out a major test of a new “super wireless” rail convoy, a technology that could reshape the future of heavy-haul transport.
Paramount Skydance (PSKY.O) has launched a $108.4 billion hostile takeover bid for Warner Bros Discovery (WBD.O). The escalation follows a high-stakes battle that had appeared to end last week when Netflix secured a $72 billion deal for the studio giant’s assets.
U.S. industrial production rose by 0.1% in September, rebounding after a decline in August, while capacity utilisation remained unchanged, according to Federal Reserve data on Wednesday.
Google’s YouTube has announced a “disappointing update” for millions of Australian users and creators, confirming it will comply with the country’s world-first ban on social media access for under-16s by locking affected users out of their accounts within days.
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