UBS predicts minimal impact on Chinese auto part makers from potential US-Mexico trade tariffs

From Investing.com: 2024-11-27 22:19:39

Chinese auto part makers with plants in North America are expected to face limited disruptions from potential U.S. tariffs on Mexico. UBS predicts minimal impact on exports from local plants due to the 10% tariff threat. Companies with plants in Mexico may struggle to replace Chinese firms. U.S. dependence gives makers more room to negotiate costs. Some Chinese firms with U.S. plants, like Fuyao Glass, are immune to tariffs and can pass costs to customers. UBS forecasts little impact on Huizhou Desay SV Automotive and Tesla supplier Ningbo Tuopu Group. Desay has limited exposure to Mexico and strong demand from local players, while Tuopu can shift orders to upcoming plants in Malaysia and Poland.



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