Jaguar Land Rover pausing shipments to U.S. in April as it develops post-tariff plans
25% tax on vehicle imports imposed by the Trump administration.
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."
The U.K. automotive industry is expected to be hit hard by the new tariffs, which come at a time when British carmakers are struggling with declining demand at home and the need to retool their plants for the transition to electric vehicles.
"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."
The number of cars made in the U.K. dropped 13.9% to 779,584 vehicles last year, according to the SMMT. More than 77% of those vehicles were destined for the export market.
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% from a year earlier in December, 12.4% in January and 34.6% 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,'' said David Bailey, an professor of business economics at the University of Birmingham.
British carmakers shipped 8.3 billion pounds ($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 179.4 billion pounds ($231.2 billion) of goods and services to the U.S. in the year through September, with services making up 68.2% of that figure.
Meanwhile,
car prices are "likely to rise significantly" for consumers
, according to Rella Suskin, equity analyst at Morningstar in a recent research note. Suskin added, "Domestically produced vehicles are expected to gain market share, but very few, even from US-based manufacturers, are made with 100% U.S. content."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Boston Globe
a few seconds ago
- Boston Globe
Trump calls on Federal Reserve official to resign after ally accuses her of mortgage fraud
Pulte also charged in his letter that Cook has listed her condo in Atlanta, Georgia, for rent. Mortgages for homes used as principal residences typically carry lower interest rates than properties that are purchased to rent, Pulte's letter said. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up The allegation represents another front in the Trump administration's attack on the Fed, which has yet to cut its key interest rate as Trump has demanded. If Cook were to step down, then the White House could nominate a replacement. And Trump has said he would only appoint people who would support lower rates. Advertisement The more members of the Fed's governing board that Trump can appoint, the more control he will be able to assert over the Fed, which has long been considered independent from day-to-day politics. Trump will be able to replace Chair Jerome Powell in May 2026, when Powell's term expires. Yet 12 members of the Fed's interest-rate setting committee have a vote on whether to raise or lower interest rates, so even replacing the Chair doesn't guarantee that Fed policy will shift the way Trump wants. Advertisement All seven members of the Fed's governing board, however, are able to vote on rate decisions. The other five voters include the president of the Fed's New York branch and a rotating group of four of the presidents of the Fed's other 11 regional branches. Trump appointed two members of the Fed's board in his first term, Christopher Waller and Michelle Bowman. Both dissented July 30 from the central bank's decision to keep its rate unchanged in favor of a rate cut. Another Fed governor, Adriana Kugler, stepped down unexpectedly Aug. 1, and Trump has appointed one of his economic advisers, Stephen Miran, to fill out the remainder of her term until January. If Trump is able to replace Cook, the first Black woman to serve on the Fed's board, as well as Kugler and Powell, that would give him a clear majority on the board of governors. Powell, however, could stay on the board after finishing his term as chair next May. The Federal Reserve declined to comment on the accusation. Trump has for months demanded that the Federal Reserve reduce the short-term interest rate it controls, which currently stands at about 4.3%. He has also repeatedly insulted Powell, who has said that the Fed would like to see more evidence of how the economy evolves in response to Trump's sweeping tariffs before making any moves. Powell has also said the duties threaten to raise inflation and slow growth. Advertisement Trump says that a lower rate would reduce the government's borrowing costs on $37 trillion in debt and boost the housing market by reducing mortgage rates. Yet mortgage borrowing costs do not always follow the Fed's rate decisions. The Trump administration has made similar claims of mortgage fraud against Democrats that Trump has attacked, including California Sen. Adam Schiff and New York Attorney General Letitia James.
New York Post
a few seconds ago
- New York Post
Top Citigroup banker Andy Sieg humiliated employees with explosive tirades, made executive cry: report
Citigroup's star wealth chief Andy Sieg is being probed after at least six managing directors accused him of humiliating employees with explosive tirades — including one outburst that reduced an executive to tears, according to a report. The New York-based megabank hired white-shoe law firm Paul Weiss to investigate CEO Jane Fraser's prized recruit following complaints he mocked and undermined one of Citigroup's most prominent female executives before she left the firm, according to Bloomberg News. Sieg, 58, who Fraser personally courted at his Connecticut home to poach from Bank of America's Merrill Lynch division, allegedly unleashed expletive-filled rants and called employees' work 'pathetic' in front of their peers, sources told Bloomberg. 7 Andy Sieg, Citigroup's embattled head of wealth, is reportedly under investigation after executives accused him of tirades, humiliations and abusive treatment. Bloomberg via Getty Images 'Some of the people also described a male managing director being reduced to tears after Sieg berated him in front of colleagues while striking a tabletop,' according to the report. At the center of the complaints was Sieg's treatment of Ida Liu, 49, who ran Citigroup's private bank for 18 years before abruptly leaving in January. Liu once held the same position Fraser occupied on her climb to CEO, making her departure particularly significant. Witnesses told investigators that Sieg openly mocked Liu in meetings, undermined her authority and made disparaging comments both to her face and behind her back. His chief operating officer, Valentin Valderrabano, allegedly ordered another managing director to cut Liu out of critical business correspondence, that executive told Bloomberg News. After Liu's exit, Sieg eliminated her position entirely and replaced her with four male regional co-heads reporting directly to him, according to the report. 7 Ida Liu, who ran Citigroup's private bank for 18 years before abruptly leaving in January, was allegedly mocked and undermined by Andy Sieg. REUTERS Senior wealth executive Kristen Bitterly also became a target of Sieg's harsh treatment, prompting multiple complaints to human resources, sources told Bloomberg News. Her predecessor, Naz Vahid, quit last year after nearly 40 years at Citigroup, partly because of concerns about how Sieg treated colleagues, people familiar with the situation told the financial news agency. 7 Kristen Bitterly, another senior executive at Citi, was reportedly on the receiving end of Sieg's ire. Linkedin/Kristen Bitterly Michell Other incidents included Sieg sarcastically ridiculing an executive to colleagues immediately after the person left the room. Human resources chief Sara Wechter ordered the outside investigation as complaints piled up from both male and female executives about Sieg's conduct since joining the bank nearly two years ago, according to the report. Board chair John Dugan also received anonymous letters detailing troubling behavior from both Sieg's current role and earlier career stints, according to correspondence reviewed by Bloomberg News. Paul Weiss investigators interviewed more than a dozen witnesses, with some questioned as recently as July, before wrapping up their probe, people familiar with the matter told Bloomberg News. 7 Bitterly and Sieg are pictured in Armonk, New York, earlier this month. Linkedin/Kristen Bitterly Michell The bank refused to reveal the investigation's findings. Sieg didn't respond to requests for comment. 'It is standard practice for us to engage an outside law firm to investigate allegations made against a senior member of the management team,' Citigroup spokesperson Mark Costiglio told Bloomberg News in a carefully worded statement. Fraser, 58, who became CEO in 2021, had bet big on Sieg to transform the wealth division as part of her broader push to boost profitability. 7 Liu, once seen as a rising star who held the same role Jane Fraser occupied before becoming CEO, became a central figure in complaints against Sieg. Getty Images Sieg sits on Citigroup's 18-person executive management team and is widely viewed as a potential successor to Fraser. Under his leadership, the wealth unit posted record revenue of $2.17 billion in the second quarter while shifting focus from lending to investment management. Citigroup shares have surged 33% this year, outpacing other major banks. 'Andy is a hard-charging leader who has established a strong, client-focused franchise that is delivering revenue growth and improved returns,' Costiglio insisted. 7 Citi CEO Jane Fraser personally courted Sieg at his Connecticut home to poach him from Bank of America. Getty Images Costiglio told Reuters that 'we look forward to Andy continuing to drive strong business performance.' The spokesperson noted that women comprise over 40% of Sieg's senior leadership team and praised his ability to 'attract, retain and promote industry-leading talent.' But the mass exodus of longtime executives tells a different story about life under Sieg's regime. The wealth division has undergone massive layoffs as part of Fraser's plan to eliminate 20,000 positions across the bank. 7 A spokesperson for Citi told Reuters that 'we look forward to Andy continuing to drive strong business performance.' Christopher Sadowski Senior managers grew alarmed at the intensity of complaints about Sieg's behavior during the restructuring, sources said. Whether Fraser will take action against her handpicked lieutenant or stand by him despite the damaging allegations remains unclear as the investigation's conclusions stay buried. The Post has sought comment from Sieg, Fraser, Citi, Paul Weiss and Liu.
Geek Wire
a few seconds ago
- Geek Wire
Robotics startup FieldAI, backed by Gates and Bezos, hits $2B valuation after latest funding
GeekWire's startup coverage documents the Pacific Northwest entrepreneurial scene. Sign up for our weekly startup newsletter , and check out the GeekWire funding tracker and venture capital directory . FieldAI says its foundation models have been proven across a wide range of embodiments, including quadrupeds, humanoids, wheeled robots, and passenger-scale vehicles. (FieldAI Photo) FieldAI, a robotics startup backed by Bill Gates, Jeff Bezos, and others, raised $405 million in recent funding rounds as the California-based company aims to deploy its 'software brain' in a variety of robots across diverse environments. The investment, which came in consecutive Series A and A1 rounds, values the 2-year-old startup at $2 billion according to reports by Axios and CNBC on Wednesday. Gates Frontier, an investment arm of the Microsoft co-founder, previously backed FieldAI. Bezos Expeditions, the investment office for the Amazon founder, joined the latest oversubscribed round along with NVentures (NVIDIA's venture capital arm), BHP Ventures, Canaan Partners, Emerson Collective, Intel Capital, Khosla Ventures, Prysm, Temasek, and others. FieldAI builds the intelligence that powers humanoid robots and other embodiments, including quadrupeds, wheeled robots and passenger-scale vehicles. The company says its platform — called Field Foundation Models — differs from conventional vision or language models retrofitted for robotics. FFMs are designed to grapple with uncertainty, risk, and the physical constraints of the real world and safely navigate and work in dynamic, unstructured environments without prior maps, GPS, or predefined paths. FieldAI attaches its system to third-party robot hardware, and they can work autonomously across industries including construction, energy, manufacturing, urban delivery and inspection. The acceleration of robotics is evident at companies like Amazon, where the tech giant has deployed more than 1 million robots across its fulfillment network, with the goal of making warehouse work safer and more efficient. Amazon has invested in Salem, Ore.-based Agility Robotics through its Industrial Innovation Fund, a billion-dollar venture capital fund that backs different forms of supply chain technology. Agility — known for its Digit bipedal humanoid warehouse robot, was raising $400 million in new funding earlier this year, according to reports. Last year, Amazon hired three of the founders from Covariant, a Bay Area startup that develops AI for advanced warehouse robotics systems. Bezos Expeditions previously joined a $400 million funding round for Physical Intelligence, a robot startup in San Francisco that is also backed by OpenAI. FieldAI is led by veterans in robotic AI from DeepMind, Google Brain, Tesla Autopilot, NASA JPL, SpaceX, Zoox, Cruise, Amazon, DARPA, TRI, and others. 'With a deep understanding of the resilience and robustness required to deploy robotic AI in complex real-world conditions, we have taken a fundamentally different approach,' founder and CEO Ali Agha said in a statement. 'Rather than attempting to shoehorn large language and vision models into robotics — only to address their hallucinations and limitations as an afterthought — we have designed intrinsically risk-aware architectures from the ground up.'
