Heavy Effects of Tariffs on Auto Supply Chain Firms

Rome: US President Donald Trump’s 25% tariffs on auto vehicles and parts will have heavy effects on companies in the Italian auto supply chain, sector group ANFIA said Thursday. “The tariffs will not have a devastating effect, but a significant one. At a time when manufacturers and component suppliers are suffering and this is a further element of uncertainty,” said the director of ANFIA, Gian Marco Giorda, regarding Trump’s announcement.

According to Ansa News Agency, Giorda highlighted the economic imbalance between exports and imports in the auto industry. “We export from Italy about 1.2 billion components to the United States and import 230 million, while as regards vehicles, we export three times what we import,” he noted. Giorda expressed hope that the tariffs might be a negotiating tactic, leaving room for a potential halt to the maneuver.

Giorda also warned about the financial impact on consumers, explaining that the tariffs could increase the cost of a car by between 6,000 and 10,000 dollars more than the current price.