A red light for the US automobile industry?

How will Trump tariffs affect the US auto industry?

Import tariffs imposed by President Trump have already led to price increases and job losses in the domestic automotive industry. The ten-year period of growth, with record-breaking revenues for car makers and suppliers, has ground to a sudden halt. So how will President Trump’s latest proposed tariff, of 25%­ on all cars and car parts imported into the US, affect the industry?


Dana Bodnar, Atradius' economist gives us her summary of the tariff implications:


  • The world’s automotive sector is already straining under the weight of US tariffs on steel and aluminium
  • US manufacturers are reporting unplanned costs and many are facing radical restructuring and competition for local suppliers to replace international supply chains
  • Manufacturers worldwide have reported supply chain disruption. Workers have been laid off. Car sales have slowed and many auto companies are facing slashed profits and increased credit risks
  • To help mitigate the effects of US tariffs, global manufacturers are increasingly focusing on local suppliers and markets. But until these supply chains are developed, the manufacturers will face a rocky road


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About Atradius and our Publications

We are a world leader in trade credit insurance, surety and debt collections services. In addition to our direct business support services we share our expertise through regular publications. Compiled by our industry analysts and economists, these include economic trends, industry forecasts, insolvency data and credit payment research.


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