The Journal.

Trump's Tariffs Cause Chaos in Auto Industry

Mar 4, 2025

Thomas Koval, CEO of Legera Technologies, shares insights on the chaos created by Trump's tariffs on automotive parts. He discusses how the 25% tariffs on goods from Mexico and Canada threaten the supply chain crucial for U.S. auto manufacturing. Koval highlights the financial pressures faced by businesses, the potential for increased car prices, and the need for strategic inventory management. With job investments at stake, he emphasizes the urgent call for policy stability in the industry.

21:16

Episode guests

Thomas Koval

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Episode notes

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Quick takeaways

The 25% tariffs on goods from Mexico and Canada threaten the profits of the U.S. automotive industry, complicating its supply chain.

Automakers are exploring strategies like increasing local production to mitigate tariffs' financial impacts, amidst ongoing uncertainty about their duration.

Deep dives

Impact of Tariffs on the Automotive Industry

The introduction of 25 percent tariffs on materials from Canada and Mexico significantly impacts the U.S. automotive industry. Nearly 23% of cars sold in the U.S. are built in these neighboring countries, making them vital to American manufacturing. The tariffs threaten to wipe out profits for auto companies, leading to fears of increased costs being passed on to consumers. This situation creates instability in a sector that relies heavily on a complex supply chain spanning across borders.

Intro

4min

Tariffs and the Auto Industry: A Complex Interdependence

6min

Navigating Tariff Challenges in the Auto Industry

3min

Navigating Tariffs and Production Challenges in the Auto Industry

4min

The Economic Fallout of Tariffs on the Auto Industry

2min

President Trump’s 25% tariffs on goods from Mexico and Canada took effect first thing Tuesday. The American auto industry will be hit hard by these tariffs since many parts and materials come from Mexico and Canada. WSJ’s Mike Colias and a U.S. a uto parts supplier talk about the impact of the tariffs.

Further Listening:

-Trump’s Tariff Whiplash

-How One Business Is Getting Ahead of Trump’s Tariffs

Further Reading:

-Auto Executives Try to Sway Trump on Tariffs, EV Subsidies

-Tariff Threat Prompts Automakers to Find New Suppliers, Consider Higher Prices

-Canada and Mexico Gambled on a Free Trade Future. The Bet Is Turning Sour.

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