The auto parts market prepares for upheaval due to Trump's tariff policy.

Leading auto parts suppliers are exploring the possibility of relocating production to the U.S.

Auto parts suppliers are actively considering relocating their production to the U.S. or nearby countries due to the new tariffs promised by President Donald Trump.

During Trump's first term, the American automotive industry felt a significant impact of protectionism in the form of tariffs and the Inflation Reduction Act led by Joe Biden.

Most restrictions were directed at China, including a ban on the use of Chinese software and equipment in cars on U.S. roads.

Trump planned to impose a blanket tariff of 10% on global imports to the U.S. and even higher tariffs on Chinese goods. He also announced a 25% tariff on imports from Canada and Mexico.

Introducing high tariffs will not be possible to pass on to consumers, making the production of auto parts in lower-cost countries impractical. Such measures are directed at Chinese goods.

"Everyone can calculate how these tariffs will impact. We need to consider different scenarios and make decisions based on economic feasibility," said Paul Thomas, president of Bosch's North American division.

Thomas provided a specific example: the production of the electronic control unit that Bosch manufactures in Malaysia could be moved to Mexico or Brazil, where the company already has divisions.

Bosch will delay making important decisions until January 20th to see what measures will be taken regarding tariffs. Other suppliers and automakers are also evaluating the situation.

During his first term, Trump used the threat of tariffs against specific countries and automakers to force them to increase production in the U.S.

When Toyota planned to produce the Corolla in Mexico for the U.S. market, Trump sent a letter stating: "Never! Build the plant in the U.S. or pay a big tariff."

However, less than a year later, Toyota announced the construction of a $1.6 billion plant in partnership with Mazda in Alabama, and Trump claimed victory.