The Journal. Trump's Tariffs Cause Chaos in Auto Industry
64 snips
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.
AI Snips
Chapters
Transcript
Episode notes
Inventory Buildup
- Thomas Koval, CEO of Legera Technologies, discusses the impact of tariffs on his auto part supply business.
- He highlights the challenges of unpredictable policies and the need to build up inventory as a short-term solution.
Auto Industry and Tariffs
- The auto industry is significantly impacted by tariffs due to the complex cross-border supply chains.
- Nearly a quarter of US car sales come from vehicles built in Canada or Mexico.
Cross-Border Piston
- A single car part, like a piston, might cross the US-Canada-Mexico border multiple times during production.
- This complexity adds to the uncertainty and disruption caused by tariffs.