Auto Dealers Brace for Trump's Tariff Surge

Auto suppliers strategize moving production closer to the U.S. amid tariff threats. Trump's proposed tariffs could heavily impact global imports, pushing suppliers like Bosch to consider alternative production sites. Contingency plans are in motion, with an increased focus on localizing supply chains.

Global auto suppliers are re-evaluating their production strategies in response to potential tariffs promised by President-elect Donald Trump, as discussed by industry executives at CES in Las Vegas. Historically, the U.S. auto industry has been navigating protectionist policies, and impending tariffs could further reshape the landscape.

President Trump has promised sweeping tariffs, including a blanket 10% on global imports and a staggering 60% on Chinese goods. These measures could render parts from low-cost markets like China unsellable in the U.S., forcing suppliers to reconsider their production locations. Executives from Bosch and Continental expressed the need for strategic overhauls.

Industry insiders, including leaders at Bosch, Honda, and Panasonic Energy, emphasize the urgency of localizing supply chains and exploring North American sourcing options. The changing tariff landscape is pushing these companies to accelerate plans to reduce dependency on Chinese materials, ensuring compliance and competitiveness in the evolving market.

(With inputs from agencies.)