Part 3/8:
With tariffs set to escalate, several industry analysts highlight the complex entanglements within the automotive supply chain. Many manufacturers rely heavily on cross-border components, making them vulnerable to sudden legislative changes. The fear is that many suppliers may shut down or greatly reduce operations if the tariffs are enacted, creating a ripple effect across major auto companies, including GM and Ford, which depend on parts made in Mexico.
Jeff Lutz, an expert in manufacturing supply chains, notes that the U.S., Canada, and Mexico produce over 75-85% of all vehicles assembled in the U.S. Thus, clarity and alignment on regulations between these countries are crucial for maintaining a balanced economic ecosystem.