French car parts supplier Forvia has said it expects an “enormous” hit for the industry from Donald Trump’s tariffs, in one of the clearest signs yet of the likely impact of new US trade restrictions on the automotive sector.
The group, whose clients include Stellantis, Tesla and China’s BYD, has estimated that tariffs could raise annual costs by between €200mn and €450mn before it takes defensive measures. The figures come from details of internal discussions obtained by the Financial Times and confirmed by the company on Tuesday.
US President Donald Trump on Monday confirmed that he would substantially raise trade barriers in North America by going ahead with threatened 25 per cent tariffs on goods coming from Canada and Mexico. Tariffs represent a particularly severe problem for the automotive sector, which has one of the most complex and international supply chains.