5 years post-COVID, US auto sector yet again faces the crunch of tariffs and more
Nearly five years since the Covid-19 pandemic, which forced the US automakers to stop production, and now factories are hitting the same brakes once more. A shortage of domestic aluminium, restrictions on semiconductor exports and increasing tariffs are causing delays for key models, like Jeep SUVs and Ford’s high-end vehicles. Additionally, supply chain issues and geopolitical tensions are slowing down America’s auto industry, leaving us to wonder how long production can keep moving forward.
Reasons troubling the US automotive industry
The US automotive industry is facing a major setback due to a fire at Novelis, a leading aluminium supplier. This incident occurred last month at its facility in Oswego, New York and it is particularly concerning because Novelis provides a significant portion of the aluminium sheet used in vehicles, including the popular Ford F-150 pickup. In fact, Novelis supplies about 40 per cent of the aluminium sheet for the entire US auto sector, making this disruption highly impactful.
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