The News
Automakers appear particularly vulnerable to the US’ tariffs on its neighbors, experts have warned.
While President Donald Trump suspended levies on Canada and Mexico, his rapidly shifting pronouncements “are throwing decades-old supply chains into question,” Bloomberg reported, with one analyst noting that a single vehicle component could cross US borders up to eight times before assembly even takes place.
Domestic car production does not meet demand within the US, and the automotive supply chains are among the most internationally integrated, an ING economist said, meaning Trump’s tariffs “will therefore quickly lead to higher costs.” Even US giants like GM and Ford, with their global footprints — 25% of some categories of GM vehicles are imported into the US — will not be spared.
