Reforging supply chains is a slow and costly affair. Plants and production lines are planned years in advance
need a magic wand to bring back manufacturing jobs,” said President Donald Trump on November 12th, quoting someone from a past administration. “Well, we brought them back.” The world’s carmakers could be forgiven for wishing he had not bothered. They have been thwacked with tariffs on steel, aluminium and components from China, and threatened with broader levies on cars and car parts in the name of national security. A tariff deadline was looming as, a trade deal with Mexico and Canada.
The trade data may be distorted by stockpiling: in its third-quarter earnings call Volkswagen, a big European carmaker, mentioned this as a defence against threatened tariffs. And Ms Dziczek cautions that trade policies are just one of many considerations when companies are deciding where to locate new plants.
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