Can US auto supply chains build resilience amid uncertainty?

US President Donald Trump’s international trade policy is likely proving disconcerting for automakers in North America. On 11 March 2025, he announced 50% tariffs on Canadian steel and metal imports, only to renege on that pledge mere hours later. Canada accounted for six million tonnes of the US’ steel imports in 2024, more than any other country, according to the US Department of Commerce.

With Trump’s original 25% tariff on these materials restored and implemented on 12 March, a degree of certainty has been restored. Or has it? Ford Chief Executive Jim Farley has previously criticised the “cost and chaos” of the Administration’s approach. Indeed, in a moment of apparent indecisiveness, when brands with manufacturing facilities in Canada and Mexico expected to feel the brunt of US import tariffs on these countries, OEMs were dealt a reprieve the day after the measures came into effect on 5 March.

While OEMs will welcome the exemption, Trump’s proclivity for volte-face makes it difficult for them to plan beyond near-term considerations. Without the promise of stability, auto supply chains are at risk of fracturing, potentially jeopardising billions of dollars of investment.