Automotive Industry Confronts US Tariffs Amid Trade Negotiations
Major manufacturers prepare measures to mitigate the impact of tariffs imposed by the Trump Administration.
The automotive industry is taking a strong stance against tariffs imposed by the United States government under the Trump Administration, implementing a series of measures to avoid negative impacts on their financial results.
Initial actions taken by manufacturers include the cessation of car exports to the US and an increase in vehicle prices as they await the outcome of ongoing negotiations between the United States and other nations.
Companies such as Jaguar Land Rover, Audi, Volkswagen, and Stellantis have already responded to the White House's tariffs.
According to sector sources, automakers are exploring various scenarios to cope with the protectionist policies of the Trump Administration.
The first, an optimistic scenario, envisions an agreement with the White House leading to a reduction of tariffs to zero.
The second, a neutral perspective, anticipates a reduction in tariffs for countries that manufacture vehicles in the US, regardless of the model.
The third, a pessimistic scenario, indicates that Trump may maintain import tariffs on automobiles entering US ports.
In the optimistic scenario, the European Commission (EC) remains willing to negotiate with the US, offering to eliminate tariffs on industrial product exports to Europe in exchange for the 25% tariffs on car imports.
However, there appears to be limited openness to this proposition from the White House.
According to community sources, this offer was conveyed by Maros Sefcovic, the Commissioner for Trade and Economic Security, during recent discussions with US counterparts, including Secretary of Commerce Howard Lutnick and Trump Administration trade official Jamieson L. Gree.
These discussions included a two-hour video conference held last Friday, following an unsuccessful 24-hour visit to the US aimed at defusing the tariff offensive.
Meanwhile, brands such as Jaguar Land Rover, Audi, Volkswagen, and Stellantis have already reacted to the tariffs.
The latest response comes from the British manufacturer Jaguar Land Rover, which has halted shipments to the US while considering ways to mitigate the financial burden of import tariffs on automobiles.
As a result, the company is left with a supply of vehicles for only two months.
In 2024, Jaguar Land Rover sold 430,000 vehicles in the US market, with nearly a quarter of these produced domestically.
Consequently, approximately 75% of the cars sold by the brand in the US would be subject to the new tariffs.
The British automotive industry, which directly employs 200,000 workers, is significantly exposed to the new tariffs.
The US ranks as the second-largest importer of cars manufactured in the UK, following the European Union, holding nearly a 20% market share according to data from the Society of Motor Manufacturers and Traders (SMMT).
Initial actions taken by manufacturers include the cessation of car exports to the US and an increase in vehicle prices as they await the outcome of ongoing negotiations between the United States and other nations.
Companies such as Jaguar Land Rover, Audi, Volkswagen, and Stellantis have already responded to the White House's tariffs.
According to sector sources, automakers are exploring various scenarios to cope with the protectionist policies of the Trump Administration.
The first, an optimistic scenario, envisions an agreement with the White House leading to a reduction of tariffs to zero.
The second, a neutral perspective, anticipates a reduction in tariffs for countries that manufacture vehicles in the US, regardless of the model.
The third, a pessimistic scenario, indicates that Trump may maintain import tariffs on automobiles entering US ports.
In the optimistic scenario, the European Commission (EC) remains willing to negotiate with the US, offering to eliminate tariffs on industrial product exports to Europe in exchange for the 25% tariffs on car imports.
However, there appears to be limited openness to this proposition from the White House.
According to community sources, this offer was conveyed by Maros Sefcovic, the Commissioner for Trade and Economic Security, during recent discussions with US counterparts, including Secretary of Commerce Howard Lutnick and Trump Administration trade official Jamieson L. Gree.
These discussions included a two-hour video conference held last Friday, following an unsuccessful 24-hour visit to the US aimed at defusing the tariff offensive.
Meanwhile, brands such as Jaguar Land Rover, Audi, Volkswagen, and Stellantis have already reacted to the tariffs.
The latest response comes from the British manufacturer Jaguar Land Rover, which has halted shipments to the US while considering ways to mitigate the financial burden of import tariffs on automobiles.
As a result, the company is left with a supply of vehicles for only two months.
In 2024, Jaguar Land Rover sold 430,000 vehicles in the US market, with nearly a quarter of these produced domestically.
Consequently, approximately 75% of the cars sold by the brand in the US would be subject to the new tariffs.
The British automotive industry, which directly employs 200,000 workers, is significantly exposed to the new tariffs.
The US ranks as the second-largest importer of cars manufactured in the UK, following the European Union, holding nearly a 20% market share according to data from the Society of Motor Manufacturers and Traders (SMMT).
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