Denso eyes price negotiations, not panic, against Trump's tariffs

Automotive and TransportationAutomotive and Transportation

Fri, January 31, 2025

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Denso eyes price negotiations, not panic, against Trump's tariffs

^{Published on 2025-01-31 08:01:33 - Reuters}

The world's second-largest car parts maker is not unduly worried about U.S. President Donald Trump's looming tariffs on Mexico and Canada, and may seek to manage increased costs by raising prices, a top executive at Japan's Denso said on Friday.

Denso, a major Japanese automotive supplier, is preparing for potential price negotiations rather than panicking over the possibility of former U.S. President Donald Trump's proposed tariffs if he wins the 2024 election. Trump has suggested a 10% tariff on all imports and a 60% tariff on Chinese goods, which could significantly impact global trade. Denso's CEO, Shinnosuke Hayashi, expressed confidence in the company's ability to manage these challenges through negotiations with customers, emphasizing that Denso has a history of dealing with trade frictions. Hayashi also highlighted the company's strategy to diversify its supply chain and increase local production in the U.S. to mitigate the effects of any new tariffs. This approach reflects a broader industry trend where companies are adapting to potential trade policy changes by enhancing their operational flexibility and resilience.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/denso-eyes-price-negotiations-not-panic-against-trumps-tariffs-2025-01-31/ ]

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