Why tariffs matter for automotive suppliers
Automotive programs run for years at agreed piece prices, often with annual price-downs. A duty change on a part sourced from one country can wipe out the margin on a high-volume component, and the volumes make even small per-unit differences significant.
Supply chains are deep and global. A single module may combine castings, electronics, wiring and plastics from several tiers and countries, and the duty on each feeds the cost of the part you ship.
Program decisions are long-lived too. A sourcing choice made for a vehicle launch can lock in an origin for the life of the program, so the duty assumptions behind it need checking against current rates, not the ones that applied when the quote was signed.