The Indicator from Planet Money Looking for love in the auto supply chain
Nov 19, 2025
Foreign automakers are feeling the pinch of tariffs and are turning to U.S. suppliers to avoid skyrocketing costs. A fascinating speed-dating event matches suppliers with carmakers like Honda and Mercedes. The five-minute pitch format is nerve-racking but efficient for establishing new relationships. Tariffs have spurred interest in domestic suppliers, but the lengthy validation process can slow down decisions. With rising material costs overseas, carmakers are cautiously exploring local options, all while grappling with the complexities of procurement strategies.
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Tariffs Drive U.S. Supplier Search
- Tariffs push foreign automakers to buy more U.S. parts to avoid extra costs.
- Speed-dating events aim to speed introductions but don't shorten the long validation process.
Five-Minute Supplier Speed Dating
- Sellers get five-minute pitches to major automakers at a matchmaking event in Huntsville, Alabama.
- Jack Grace describes the experience as nerve-wracking but better than aimless trade-floor pitching.
Supplier Feel Matters To Buyers
- Doug Drake from Baxter says material costs from overseas rose 15–50% for some items.
- He judges potential partners by meeting them face to face to sense personality and fit.