The US Automotive Industry: Global Players Facing Tightened US Trade Rules – JD Supra

Earlier this month, we published our Advance Look at Hot Button Trade Issues under the Biden Administration. Today we take a deeper look into what is in store for the automotive industry. The application of US trade actions in this highly integrated industry means that US trade action on one company’s product in the automotive supply chain will be felt by another.

Automotive executives understand how their supply chains are interconnected and have organized their commercial relationships accordingly. The growing role that international trade rules are playing has left many corporate leaders to look beyond regularly imposed tariffs. Recent additions to trade agreements include deep-reaching requirements on non-tariff issues, such as labor provisions, which have become intrusive to the entire supply chain. And none more so than the automotive parts industry.

In our broader piece, we discussed 25 areas of trade policy. Here, for automotive executives, we highlight five. While we begin with the tariffs on US imports, we end with possible market restrictions on US automotive exports.

1) US Tariffs and Automotive Parts: Transparent & Measurable to the Bottom Line

In our view, there is a common theme among these developments – that forthcoming decisions in Washington in the arena of trade will seek to counter growing volumes of imports from China and this by using existing legal authority while injecting expanded and new enforcement tools.

President Trump made full use of executive powers on several fronts, including the authority to apply unilateral tariffs on a wide range of US