Moody’s says Trump’s Tariffs Will Disrupt Supply Chain
Moody’s said American automakers will not be immune from the import tariffs. The firm noted that both General Motors and Ford depend on imports from Mexico and Canada.
“Tariffs would be a negative for both Ford and GM. The burden would be greater for GM because it depends more on imports from Mexico and Canada to support US operations,” the report said. “In addition, a significant portion of GM’s high-margin trucks and SUVs are sourced from Mexico and Canada … Both manufacturers would need to absorb the cost of scaling back Mexican and Canadian production and moving some back to the US.”
Trump’s trade policy is already spurring companies to change their manufacturing plans. Shares of Harley-Davidson plunged after the iconic American motorcycle manufacturer said it will begin shifting some production overseas to offset the impact of retaliatory EU tariffs on certain US goods.
