US Auto Industry Stunned By Tariffs Meant To Save It [Barron's]
General Motors Company (GM)
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Source: Barrons
While the implementation of the tariffs had been anticipated for weeks, their details surprised manufacturers and experts as the levies will not only apply to imports of finished vehicles but parts as well. That will be particularly painful because the sector relies on a complex global supply chain, sometimes involving multiple border crossings, with assembly in one country of parts manufactured in others. The levies kick in April 3 at 04:01 GMT, according to the decree signed by the Republican president on Wednesday. The manufacturing process at Ford and General Motors depends largely on a highly complex back-and-forth between the United States, Mexico, and Canada -- the three countries linked by the USMCA, a free trade agreement signed by Trump during his first term. However, Trump's decree doesn't provide exemptions for imports under USMCA, dashing industry hopes that car parts would be spared. The tariffs include "crucial parts" -- engines, transmissions, powertrains, a
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