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May 1, 2025
| This week’s procurement news and insights for supply chain leaders
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NOTE FROM THE EDITOR
As global trade tensions continue to impact key industries, the U.S. auto sector has been bracing for the rollout of new tariffs on auto parts. Ahead of the May 3 implementation date, automakers and industry groups requested flexibility from the Trump administration to help mitigate duties and avoid stalled production.
The industry got some relief earlier this week, as President Donald Trump announced a temporary reimbursement program. Starting May 3, U.S.-based car manufacturers will be eligible to recover up to 3.75% of their incurred costs from auto parts tariffs for one year, retroactive to April 3.
The move is the latest in a whirlwind of changes to the administration’s tariff-driven trade strategy. If you ever need a refresher to keep up, check out Supply Chain Dive’s tariff tracker, which we update regularly.
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Kelly Stroh
Editor, Supply Chain Dive
Email
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The president will allow automakers to offset some costs while clarifying that potentially overlapping tariffs on Canada, Mexico, steel and aluminum will not stack.
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A new report estimates that higher import duties on automotive parts will impact nearly all of the 17.7 million vehicles built in the U.S. annually.
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The toy and game company aims to source less than 40% of its volume from the country by 2026.
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New import duties are poised to raise prices in time for peak shopping periods, starting with the back-to-school season and Halloween.
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Manufacturers pulled back on production last month as the Trump administration's volatile trade policy caused consumer confusion and a drop in demand, per the Institute for Supply Management.
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The company is leaning on its 90 days of inventory to soften the blow, hoping to cut the impact cost in half.
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The pharmaceutical company joined several of its peers in committing to invest billions of dollars in new and expanded manufacturing facilities in the U.S.
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Deep Dive
After the chaos of the pandemic, manufacturers learned to lean into supplier relationships and supply chain resiliency to avoid future disruptions.
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Over $400 billion worth of goods were imported from China in 2024, with electronics, toys, furniture and machinery topping the list.
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The Trump administration’s latest such investigation could set the foundation for new sector-specific tariffs.
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From Our Library
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