The Effect Of Tariffs On The Auto Industry — It's Not Just EV Manufacturers That Are Hurting - CleanTechnica

The article discusses the widespread negative impact of tariffs imposed by the Trump administration on the global auto industry, affecting not only electric vehicle (EV) manufacturers but the entire automotive supply chain. Tariffs ranging from 7.5% to 25% on automobiles and auto parts have significantly increased production costs, leading to higher vehicle prices for consumers. The complex network of suppliers, many of which are small to midsize companies with slim profit margins, is particularly vulnerable. These suppliers face pressure to adapt by diversifying production, which introduces inefficiencies and longer lead times. Additionally, the shift toward electric vehicles adds uncertainty, as many combustion engine parts may become obsolete, while the administration’s policies favoring internal combustion engines further cloud the industry's future. Internationally, the tariffs are straining relationships with key automotive trading partners such as Japan, Germany, South Korea, China, and Canada. These countries have large automotive parts sectors employing hundreds of thousands of workers, and the tariffs are driving up costs and threatening jobs.