Trump Just Gave Carmakers a One-Month Tariff Reprieve. Building Plants Takes Years
Workers assemble vehicle doors at an assembly plant in Fort Wayne, Indiana. Auto parts represent about half of the value of auto industry imports into the US.
Photographer: Emily Elconin/BloombergPresident Donald Trump’s desire to bring automotive production back to America from Mexico and Canada is up against an inconvenient reality: It will take years for most automakers and it may never happen for cash-strapped parts suppliers.
Trump gave carmakers and their suppliers a month’s reprieve from the 25% tariffs he imposed on Canada and Mexico in part for companies to come up with plans to move more production to the US, Bloomberg News reported on Wednesday. But building factories in the US will take years and won’t be financially feasible for many suppliers, according to a report Thursday from Bank of America.