On May 3, President Donald Trump of the United States began imposing a 25% tariff on automobile parts. According to a report by the Nihon Keizai Shimbun (Nikkei), it was found that just over 50% of the parts used in cars produced in the United States are imported.
Nikkei reported that an analysis of the import ratio of parts by value for 169 models made in the United States, out of 551 models registered with the National Highway Traffic Safety Administration (NHTSA), showed that the ratio exceeded 50%.
The import ratio of parts was 90% for Germany's Mercedes-Benz and 73% for BMW. For American manufacturers Ford and General Motors (GM), the ratio was about 60%. Hyundai Motor's ratio was below 60%.
The Trump administration announced measures to partially ease tariffs on automobile parts for two years. However, there are views that finding a solution for tariff exemptions is not easy due to the complexity of the automotive supply chain.
Nikkei reported that, according to a survey conducted last month among Japanese auto parts companies, 55% of 29 companies that responded that the tariff burden had increased are considering passing the cost of U.S. tariffs on to product prices.
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