New US Tariffs to Disrupt Automotive Supply Chains

The US is imposing 25% tariffs on imported automobiles (April 2) and auto parts (May 3), increasing costs and straining supply chains. The US imports 8 million cars yearly, with 60% of domestically produced vehicles relying on foreign parts. While USMCA-compliant parts from Canada and Mexico are exempt for now, supply chain expert Scala warns of industry-wide disruptions. Smaller suppliers face the biggest risks, while larger manufacturers struggle with relocation costs. Airfreight will be heavily impacted, with Germany, China, and Japan among the hardest-hit exporters. Businesses must prepare for ongoing trade volatility and shifting global supply chains.