Honda Supplier Rethinks China Relationship as Trade War Bites

As the US-China trade war roils the auto, steel and rare earths sectors, few companies are feeling the pressure more than Daido Steel Co.

The supplier to Honda Motor Co. and other major manufacturers is facing a trio of headwinds: a 50% tariff on US imports of steel, a 25% duty on foreign-made cars and separate levy on parts, and China’s tightening of exports of rare earths — minerals critical to making magnets for motors.