Sectors
Foley & Lardner LLP partner Vanessa Miller described how the specter of U.S. tariffs on Canada and Mexico is disrupting the auto industry in The Wall Street Journal article, “Tariff Threat Prompts Automakers to Find New Suppliers, Consider Higher Prices.”
Miller said that some parts makers are already in discussions with their automaker customers about which side will bear the resulting added expenses of the tariffs.
She noted that while automakers generally agree to buy parts from suppliers at fixed prices, those suppliers cannot absorb a 25% cost increase and remain profitable.
“It’s a mess,” she added.
Miller’s commentary also appeared in MSN.
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