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Supply chain worries?

What will current and impending tariffs mean for manufacturing in America?

Mar 10, 2025

2 min

Steven Carnovale, Ph.D.

With a trade war that sees steep tariffs on imports from China, Canada and Mexico - various industries across the continent are scrambling to figure out how to conduct cross-border business in the wake of President Trump's new policies on trade.


For many industries with production lines that crisscross the border, there's concerns about how to prosper or function in the future.


Among Detroit brands, GM's Chevrolet and GMC pickups, along with Stellantis's Ram, are more exposed to Trump's taxes than Ford because both build large numbers of pickups in Mexico.

Ford builds its F-series pickups in the United States - but also makes some truck engines in Canada, underscoring the web of economic interdependence among the three North America trading partners.

Almost no American vehicle is made from solely American parts, industry research shows.

Barclays bank analysts estimate that Mexico provides up to 40% of the parts in U.S. vehicles and Canada more than 20%. Suppliers say they will have to cover some of the tariff costs and will likely see an additional hit if consumer demand weakens from rising vehicle prices.

Automakers and suppliers also worry about the effects of tariffs on vehicle components that bounce across borders before reaching their final destination. Companies worry that such parts could be taxed with every border crossing, although Trump has not clarified his policy in such cases. March 05 - Reuters




Industry insiders are saying companies need to adapt their strategies immediately.



To become more agile, companies are increasingly turning to advanced supply chain solutions. Modern platforms provide end-to-end visibility, helping businesses map complex, inter-connected supply chains made up of multiple tiers and assess risks associated with tariffs or regulatory changes. These tools enable companies to model the financial impact of different scenarios, offering data-driven insights for supplier diversification or regional sourcing strategies.  March 06- Supply Chain Management Review



Despite the 30 day reprieve for automakers, companies are still waiting and figuring out how to adapt.

If you're a journalist covering tariffs and the trade war and how the supply chain might be impacted, Steven Carnovale can help.


Steven is a supply chain strategist specializing in interfirm networks, risk management and global sourcing/production networks.


Steven is available to speak with media. Simply click on his icon now to arrange an interview today

Connect with:
Steven Carnovale, Ph.D.

Steven Carnovale, Ph.D.

Associate Professor

Steven Carnovale is a supply chain strategist specializing in interfirm networks, risk management and global sourcing/production networks.

Supply Chain Risk ManagementSupply Chain Risk PropagationNetwork TheoryGlobal Sourcing StrategiesSupply Chain Analytics

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