Auto Industry Braces for Trump's Tariff Surge

Global auto suppliers are scrambling to evaluate the impact of potential tariffs promised by President-elect Donald Trump. His plans for increased tariffs could significantly affect production costs and locations, pushing companies to reconsider their supply chains, especially in light of recent shifts towards localization under the Biden administration.

Global automotive suppliers are strategically reassessing their production footprints as they brace for President-elect Donald Trump's proposed tariffs. Industry executives speaking at the CES in Las Vegas revealed that this potential policy shift has spurred a whirlwind of logistical calculations among auto parts manufacturers.

Over the past eight years, the auto sector has navigated a landscape of U.S. protectionist measures targeting China, under both Trump's previous term and the subsequent Biden administration. As Trump prepares to possibly implement sweeping duties, including a 10% tariff on global imports and 60% on Chinese goods, suppliers are eyeing alternatives.

Companies like Bosch and Honda are contemplating relocations of production from countries with potential tariff vulnerabilities to safer regions. Concurrently, this policy uncertainty has accelerated localization efforts in North America, aimed at dodging supply chain disruptions and potential new border taxes.

(With inputs from agencies.)