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The maker of Jaguar and Land Rover cars is pausing shipments to the U.S. as Britain's struggling 

 begins to respond to the 25 percent tax on vehicle imports imposed by 

Jaguar Land Rover Automotive, one of Britain’s biggest carmakers, said Saturday that the pause would take place this month.

“The USA is an important market for JLR’s luxury brands,” the company said in a statement. “As we work to address the new trading terms with out business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans.”

Analysts said they expect other British carmakers to follow suit as the 

 that is already struggling with declining demand at home and the need to retool their plants for the transition to electric vehicles.

“I expect similar stoppages from other producers as firms take stock of what is unfolding,” said David Bailey, an automotive industry expert and professor of business economics at the University of Birmingham.

The number of cars made in the U.K. dropped 13.9 percent to 779,584 vehicles last year, according to the SMMT. More than 77 percent of those vehicles were destined for the export market. U.K. factories export cars such as Nissan's Qashqai and Juke, BMW Mini, and Toyota Corolla, as well as Land Rover and Jaguar models.

“The industry is already facing multiple headwinds and this announcement comes at the worst possible time,” Mike Hawes, chief executive of the U.K.’s Society of Motor Manufacturers and Traders, said last week. “SMMT is in constant contact with government and will be looking for trade discussions to accelerate as we need to secure a way forward that supports jobs and economic growth on both sides of the Atlantic.”

U.K. carmakers have already taken steps to lessen the immediate impact of the tariffs by building stockpiles in the U.S. before the increase took effect. SMMT figures show that exports to the U.S. jumped 38.5 percent from a year earlier in December, 12.4 percent in January and 34.6 percent in February.

"This was manufacturers like JLR trying to get ahead of the game in terms of getting inventory to the U.S. before the tariffs were implemented,'' Bailey said.

British carmakers shipped $10.7 billion worth of vehicles to the U.S. in the 12 months through September, making cars the single biggest goods export to the U.S., according to government statistics.

But cars make up a relatively small part of overall trade between Britain and the U.S., which is heavily weighted toward services.

Britain exported $231.2 billion of goods and services to the U.S. in the year through September, with services making up 68.2 percent of that figure.

The Associated Press

Author

The British maker of Jaguar and Land Rover cars is pausing shipments to the U.S. as it works to mitigate the impact of a 25 percent tax on vehicle imports imposed by the Trump administration.

Jaguar and Land Rover maker pauses shipments to U.S.

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