3/5/2025

Tariffs can play a role in protecting vital industries (i.e. the American and new domestic car makers in the USA would not want to compete against BYD EVs imported into the US from China).

Importing BYD EVs into the USA, would be better for the consumer, but the damage to the American Automotive industry would be too catastrophic.

This not a lasting solution though. Consumers need the best options available, and American carmakers need to get back on track and catch up to the competitors in Asia.

Over time …. will they? I think so.

Tariffs on components, or materials from traditional trading partners in Mexico and Canada?

Anyone who understands the global supply chain knows this is not a lasting solution.

I spoke with several Automotive VPs yesterday, and they are in panic mode …. any component shipped over the border from Canada or Mexico would be a +25% tariff on the product …. the OEM suppliers were still requesting material to be shipped, but the suppliers are saying, “no”, we can’t eat this cost.

Loggerheads.

Automotive Executives are working well into the evenings these days, to figure out their options.

The disruption in a supply chain that has been blown up these past five years, and even more disruption will cause some companies to go out of business, especially if they’ve had bad luck in the past year or two.

Temporary tariffs … can it be good strategy to change terms and conditions between countries? The color of your blood, red or blue, will give you a way to justify this decision as good or harmful.

Objectively .. giving long-term trading partners the incentive to look elsewhere to buy and sell products, never seems like a good idea.

To be clear, tariffs are not paid by countries. They are paid by the exporters of products into a country, and ultimately this price is passed onto the consumers of the countries in which the tariffs were placed. The net result is an increase in cost of purchases (inflation), for the customers.

If the current tariffs in place were to last, the price of vehicles would go up $12,000 each for American consumers.

What will the results of these tariffs be? How long will they last?

My best guess, is that beginning today (Wednesday), there will be work towards adjustments, or removals in the near term from the tariffs (+25% for products shipped in from Canada and Mexico), that were put in place yesterday (Tuesday).

I’d be curious to get your thoughts below.

46 – 54, rain and clouds.

Make it a great day, everyone!

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SCN – Search Consulting Network

How long will the 25% tariffs last from material brought in from Canada and Mexico?

The author can see how you vote. Learn moreHow long will the 25% tariffs last from material brought in from Canada and Mexico?

1 Day

1 Week

2 – 3 Weeks

Other – please comment below