On Wednesday, sources close to GM told Reuters that the automaker is looking to move its auto parts supply chains out of China entirely:
General Motors (GM.N), has directed several thousand of its suppliers to scrub their supply chains of parts from China, four people familiar with the matter said, reflecting automakers’ growing frustration over geopolitical disruptions to their operations. [Emphasis added]
GM executives have been telling suppliers they should find alternatives to China for their raw materials and parts, with the goal of eventually moving their supply chains out of the country entirely, the people said. The automaker has set a 2027 deadline for some suppliers to dissolve their China sourcing ties, some of the sources said. [Emphasis added]
In October, Trump announced 25 percent tariffs on medium and heavy-duty trucks and truck parts. The tariff on medium and heavy-duty truck parts applies to engines, transmissions, tires, and chassis, among other parts, administration officials said.
Even as Trump has struck a deal with China to open its markets to some U.S. exporters, the administration continues levying tariffs on Chinese-made goods, as well as a 10 percent reciprocal tariff.
GM’s decision to get its parts suppliers out of China comes as CEO Mary Barra said last year that despite continued quarterly losses in China, the automaker remained “committed” to the communist country’s auto market.
Likewise, just in August, Barra defied Trump’s tariffs on China and planned to import Electric Vehicle (EV) batteries from China’s Contemporary Amperex Technology (CATL) for its second-generation Chevrolet Bolt.
John Binder is a reporter for Breitbart News. Email him at jbinder@breitbart.com. Follow him on Twitter here.
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