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The North American Autos supply chain is facing a tariff crisis, raising concerns about the prospects of parts suppliers.
President Trump’s trade policies regarding commodities from Mexico and Canada may have a heavier impact on North American Auto Parts suppliers than on complete vehicle manufacturers, and the suppliers' difficulties could quickly ripple through the entire Industry. According to data from the U.S. Federal Trade Report, most vehicles produced in North America meet the free trade requirements under the USMCA, but individual components that meet the strict standards of the North American trade agreement negotiated by the Trump administration in 2020 are much fewer. Compliance with the USMCA is crucial for automakers and suppliers. Currently, products that comply with the standards (especially those involving rules on the production locations of parts or materials) are of significant importance.
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