Welcome to the Daily 5 report for Monday, July 14.
It's been three months since President Donald Trump enacted tariffs on global vehicle imports, including on free-trade partners Canada and Mexico. At the time, auto executives warned that assembly lines would grind to a halt across the continent within days or weeks of tariffs being implemented.
And yet here we are — the auto industry continues to churn out vehicles in all three countries, though at a slightly slower clip.
What gives?
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As David Kennedy's story points out, a few supply chain strategies used during the pandemic and chip shortage might have played a minor role, analysts say, but the bigger factor is that U.S. tariffs were never rolled out as broadly as initially envisaged.
Flavio Volpe, CEO of the Automotive Parts Manufacturers' Association, which represents suppliers in Canada, was among those who warned as early as January about the prospect of a widespread shutdown. He told Automotive News Canada on July 10 that outcome was only prevented by showing the White House how crippling the parts tariffs would be for automakers, who are typically the importers of record for their parts and would need to pass on the added costs in real time.
"The Americans listened," he said. "They threatened a parts tariff, and they didn't follow through on it, not because they like us, but because they understand that that math is binary."
Another tariff story of note is about Trump's threat of a 50 percent tariff on copper imports that's raising alarm in the U.S.
Three more stories you'll want to check out are Japan's new import king, Stellantis and Ferrari Chairman John Elkann's $200 million tax settlement and our latest 40 Under 40 class.
That's it for now.
Have a great rest of your day.
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— Wes Raynal, assistant web editor
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