Auto Supply Chain Can't Stomach Tariffs on Parts -- Market Talk

Dow Jones
15 Apr

0754 ET - The Rubik's Cube-like supply chain for the auto industry would become almost impossible to manage if President Trump moves forward with tariffs on foreign-made auto parts, Wedbush analysts say in a research note. The president has floated the idea of delaying or pausing auto tariffs facing the industry, which is critical at the moment because more than 40% of the Big Three automakers' parts come from foreign sources, the analysts say. "Flipping upside down a global supply chain that has been in place for decades cannot happen overnight for the auto industry," they say. The analysts add that the focus should be on finished vehicles, as the concept of a U.S.-made vehicle with all domestically made parts is "a fairytale fictional narrative." (dean.seal@wsj.com)

(END) Dow Jones Newswires

April 15, 2025 07:54 ET (11:54 GMT)

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