Tata Motors Shares in Focus as Trump Delays 50% EU Tariff to July 9
July 9 is also the day when the 90-day pause on Trump’s reciprocal tariff announcement on countries comes to an end.
Trump had threatened to impose a 50% tariff on the European Union starting June 1, as “talks with the EU were going nowhere.”
This puts Tata Motors’ Unit Jaguar Land Rover (JLR) in the spotlight, as it has a significant exposure to the US market.
Trump had announced a 25% tariff on Automobile imports into the US in April, following which, JLR had decided to pause shipments to the US market for a month. Later on, Trump signed an executive order, mixing credits with relief from other levies for up to 15% of the value of vehicles assembled
Earlier this month, reports had indicated that JLR has resumed shipments to the US.
The US is the second-biggest importer of cars made in the UK, after the European Union, with a share of nearly 20%, according to the local industry body.
Tata Motors recently reported its March quarter results on May 13, where it mentioned that it has achieved its net cash positive target for JLR by the end of the year. JLR also met its EBIT margin guidance of 8.5%.
For the new financial year though, Tata Motors said that it will share its outlook on JLR during its investor meet on June 16.
“Tariffs & geopolitical actions making operating environment uncertain & challenging,” Tata Motors had said in its investor presentation.
Shares of Tata Motors had ended little changed on Friday at ₹718. The stock has recovered 34% from its 52-week low of ₹535.
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