Part 7/12:
The automotive sector highlights the complications of integrating tariffs into existing supply chains. The North American automotive industry, which thrives on cross-border parts exchange, is subject to tariffs that hinder production processes and can induce cascading price increases across the board. A fragmented approach to tariffs can thus threaten the entire industry, leading firms to reconsider their production strategies and potentially shift operations abroad, further jeopardizing American jobs.