Michigan auto parts manufacturers could feel the heat from potential European Union retaliatory tariffs. Rear-view mirror exports from Michigan to the EU, valued at $519 million in 2024 and representing 48% of the state's global exports in this category, are particularly vulnerable.
As reported by CNBC, unlike some consumer goods where demand may decline, the automotive sector has more room for negotiation due to the integrated nature of global supply chains.
"In previous tariff conflicts, we've seen that U.S. exporters of critical automotive components—such as precision electronics from Michigan—often partially absorb retaliatory tariff costs," explained Brandon Daniels, CEO of corporate risk management consultant Exiger. "While essential components will continue to flow, American producers typically share tariff pain with their European buyers, as neither side can afford to bear the full cost alone. This shared burden highlights how interconnected the automotive supply chain truly is."
South Carolina exported $223 million in flexible polymer ethylene copolymers—a chemical used in automotive components—to the EU in 2024, representing 59% of its exports to the world.
The EU automotive sector could also face risks from US countermeasures. In 2022, European automakers exported approximately $54 billion worth of vehicles to the US, significantly exceeding American automotive exports to the EU, creating leverage for US trade negotiators in ongoing discussions.
