Bloomberg Businessweek Perplexed Automakers Take on Tariffs, Supply Chain Struggles
May 2, 2025
Joining the conversation are Sarah Barnes-Humphrey, a supply chain guru and founder of 'Let's Talk Supply Chain,' who dives into the impact of tariffs and pandemic-driven challenges on global shipping strategies. Also, Alexis Browne Roberts, COO of Alexis Investment Partners, shares insights on market trends, highlighting the investment landscape's resilience. They discuss how automakers adapt to economic upheavals and examine innovative shifts in supply chain management and investment strategies to navigate uncertainty.
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Automakers' Tariff Responses
- Mercedes is coping with tariffs by moving production of one core vehicle to the U.S. They leverage existing American factories and suppliers to ease the transition.
- Ferrari raised prices by 10% due to tariffs; Aston Martin paused imports to assess impact. Automakers respond to tariffs on a case-by-case basis.
Supply Chain Redesign and Challenges
- Companies are redesigning supply chains amid tariff uncertainty by shifting manufacturing locations internationally. Supply chain design is now about balancing risks and opportunities.
- U.S. manufacturing shift is lengthy and costly; some businesses question if they can source machinery or labor domestically. Effective supply chains require long-term planning amid fluctuating policies.
Shipping Slowdown Increases Costs
- Shipping declines 35% at the Port of Los Angeles due to reduced cargo vessel stops, leading to higher container shipping costs.
- Higher shipping fees will compound the cost of goods, impacting supply chains and retail prices amid current tariff tensions.