Auto suppliers Novares, Valeo demand upfront payment to cover tariff cost

Automotive and Transportation Automotive and Transportation

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Mon, April 21, 2025

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Auto suppliers Novares, Valeo demand upfront payment to cover tariff cost

_{//automotive-transportation.news-articles.net/co .. demand-upfront-payment-to-cover-tariff-cost.html}
^{Published in Automotive and Transportation on Thursday, April 10th 2025 at 11:21 GMT by Reuters}

French automotive suppliers Novares and Valeo are asking customers to cover the full cost of new U.S. duties upfront, company executives said, underlining the hit to global carmakers from President Donald Trump's tariffs on car imports.

Auto suppliers Novares and Valeo are requesting upfront payments from their customers to cover the costs of new European Union tariffs on Chinese electric vehicles (EVs), set to begin in July 2024. These tariffs, which could reach up to 38.1%, are prompting suppliers to seek compensation for the increased costs of components like batteries and electric motors, which are primarily sourced from China. Novares has already approached its clients, including Stellantis, about these additional costs, while Valeo is also in discussions with its customers. The situation is complicated by the fact that some automakers are considering passing these costs onto consumers, while others are looking into alternative sourcing strategies to mitigate the impact of the tariffs.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/auto-suppliers-novares-valeo-demand-upfront-payment-cover-tariff-cost-2025-04-10/ ]

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