Things are about to get really interesting in the automotive parts industry!
Why is Ford is stockpiling automotive parts? The automaker is stockpiling USMCA-compliant parts, reassessing cross-border logistics, and urging suppliers to continue shipping under existing terms to navigate the impact of U.S. tariffs on steel, aluminum, and imports from Mexico and Canada. The 25 percent tariffs are causing significant tension within the automotive supply chain. Smaller suppliers face potential collapse under the financial strain, and disputes over who should absorb the costs are mounting. Automakers, suppliers, and industry groups are advocating to delay or exempt the auto sector from the tariffs on Canada and Mexico while waiting for the renegotiation of the USMCA, planned for the next year.