Not a lot to report on the tariff front this week, at least as it pertains to the auto industry. There are a few things that caught my attention:
Domestic Manufacturing Revival Promise Met with Skepticism
President Trump continues to pitch his sweeping tariff strategy as the backbone of a U.S. manufacturing comeback. However, critics argue the indiscriminate application and legal ambiguity of these tariffs may deter long-term investment, particularly in the auto industry, which risks lagging behind in the electric vehicle transition.
Multi-Year Steel Deals Offer Supply Stability
Cleveland‑Cliffs inked two- and three-year contracts to supply flat-rolled steel—crucial for auto body panels—to U.S. automakers (reported to include General Motors). These long-term deals help stabilize sourcing amid the ongoing supply chain turbulence driven by elevated tariffs.
EU Pushes for Lower Auto Tariffs in Trade Talks
Germany reiterated that the U.S. must honor the preliminary EU–U.S. agreement to reduce tariffs on European-made cars before a formal trade accord can be signed. This highlights the significant role of auto tariffs in broader transatlantic negotiations.
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