“Global auto parts suppliers are considering how much of their production they can move to or closer to the United States in response to promised tariffs announced by President-elect Donald Trump.”, — write: epravda.com.ua
Global auto parts suppliers are considering how much of their production they can move to or closer to the United States in response to promised tariffs announced by President-elect Donald Trump. This was reported by representatives of the industry, writes Reuters. The auto industry has already experienced eight years of American protectionism, from real and threatened tariffs during Trump’s first term to new tariffs and the passage of the Lower Inflation Act during Joe Biden’s presidency. Most of these measures have been aimed at China, including the Biden administration’s proposal to ban the use of Chinese software and hardware in cars on US roads.Advertisement: However, Trump has promised to go further, imposing a blanket tariff of 10% on global imports into the US and a much higher 60 % — on Chinese goods. In late November, he announced his intention to impose a 25% tariff on imports from Canada and Mexico after taking office on January 20. Such high tariffs will be difficult to pass on to consumers, and will make many auto parts unprofitable to produce in lower-cost countries and, in the case of China, virtually impossible to sell in the US. “Everyone can do the math,” Paul Thomas, president of the North American division of Bosch, the world’s largest auto parts supplier, told Reuters in an interview. , which scenarios are economically feasible, and which should be responded to.” Speaking on the sidelines of the CES technology show, Thomas gave a theoretical example: an electronic control unit that Bosch currently manufactures in Malaysia or a similar market is now being considered for production in Mexico or Brazil, regions where the company already has production facilities. Bosch will wait until Jan. 20 to see what measures are in place before making “significant decisions,” Thomas added, which other suppliers and automakers have confirmed. During his first term, Trump used the threat of tariffs against individual countries or even specific automakers to force them to increase production in the US. When Toyota announced plans to make the Corolla sedan in Mexico for US consumers in early 2017, Trump wrote in X: “NEVER! Build a plant in the US or pay a big border tax.” Less than a year later, Toyota announced a $1.6 billion plant joint venture with Mazda in Alabama, and Trump claimed victory.