An Automotive News article, “U.S. imposes tariffs on Canada, Mexico imports, upending complex auto supply chains,” discussed tariffs that went into effect on March 4, forcing automakers and suppliers to brace for higher costs and significant disruptions to vehicle and parts production.
The trade war between the U.S. and its closest trading partners threatens to upend the decades-old and highly integrated automotive supply chain in North America.
“A lot of suppliers are just not going to be able to bear these tariffs at all. In that case, production lines are going to be impacted,” said Homayune Ghaussi, chair of law firm Warner Norcross + Judd’s Supply Chain Industry Group.
MEMA, the trade organization representing U.S. suppliers, has warned of “severe consequences” for parts makers. Tariffs could jeopardize jobs, increase costs on consumers and discourage domestic investment in emerging technologies, MEMA said.
“Let’s be real honest: Long-term, 25 percent tariffs across the Mexican and Canadian border would blow a hole in the U.S. industry that we have never seen,” Ford CEO Jim Farley said Feb. 11.
Automotive News subscribers can read the complete story here.
With deep roots in the heart of the U.S. automotive industry, Warner’s Automotive Industry Group provides proactive, timely and cutting-edge advice to suppliers throughout Michigan, North America and around the globe. Warner attorneys are recognized leaders in every area of law that impacts the global automotive and mobility market and understand the complex relationships between parts suppliers and vehicle manufacturers. Firm attorneys stand ready to assist suppliers assessing their current contracts and risks from tariffs.
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