Trump's tariff threat spurs auto suppliers to rethink production plans

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Trump's tariff threat spurs auto suppliers to rethink production plans

^{Published on 2025-01-09 01:41:34 - Reuters}

Global auto suppliers are working out how much of their production can be moved to the United States, or closer to it, as a defense against tariffs promised by President-elect Donald Trump, according to industry executives at CES in Las Vegas.

The article from Reuters discusses how former U.S. President Donald Trump's threat to impose a 10% tariff on all imported goods if re-elected has led automotive suppliers to reconsider their production strategies. At the CES technology trade show in Las Vegas, industry leaders expressed concerns over the potential impact of these tariffs. Companies like Magna International and Bosch are already contemplating shifting production back to the U.S. or to Mexico to mitigate the effects of such tariffs. Magna's CEO, Swamy Kotagiri, highlighted the need for a balanced approach to trade policies, while Bosch's CEO, Stefan Hartung, noted that while tariffs could increase costs, the company's diversified supply chain might help absorb some of the impact. The article also mentions that these potential policy changes could lead to higher costs for consumers and might disrupt the global supply chain, prompting a strategic rethink among automotive suppliers.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/ces-trumps-tariff-threat-spurs-auto-suppliers-rethink-production-plans-2025-01-09/ ]

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