Automotive supply chain braces for change

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Tearing up the Nafta agreement was a keynote pledge of Donald Trump’s election campaign as he vowed to return manufacturing jobs to the US. It has been replaced with the United States Mexico Canada Agreement (USMCA), and according to this report from DCVelocity, in the long-term automotive executives expect this aim to be achieved, in their industry at least. However, there are likely to be some disruptions in the nearer future: “41% of respondents said they expect production costs to increase by 10% over the next three years due to the USMCA while 26% said costs could increase by 25% or more in that timeframe.”