The US-China trade war and the impact on the automotive industry

A look at the trade of vehicle parts throughout the US-China trade war and the possibilities created for Mexico

With complex supply chains and trade flows, making sense of the impact fluctuating tariffs have had on the automotive industry and determining which companies will be hardest hit is not straight forward.

Since the trade war began in 2018 there have been a flurry of tariffs from both sides targeting the automotive industry with up to 25% tariffs placed on automobiles and their parts. There was a period of reduced tension at the beginning of 2019 with most tariffs on automobiles at least being lowered temporarily. However, a sudden increase in tensions has again ignited this trade war and more 25% tariffs on automobiles and parts have been threatened. This leaves a tumultuous and uncertain environment for the foreseeable future.

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