Donald Trump’s tariffs on China have sent automakers scrambling to keep production lines moving—and their main solution is the exact opposite of what the U.S. president intended.
When Trump announced his sweeping “
reciprocal” tariffs on almost every country (and a few
uninhabited islands) in April, he
promised that “jobs in factories will come roaring back into our country.” Apparently, part of his goal was to make it so expensive to import certain products that companies would simply start manufacturing them in the U.S.
But so far, the opposite is coming true. Four major automakers are rushing to find a way to keep procuring rare-earth magnets, a key component of car motors, which are primarily made in China. Without the magnets, the companies fear car production could shut down in a matter of weeks.
Several carmakers, both traditional and electric, are considering moving part of the manufacturing process to China,
The Wall Street Journal reported Wednesday.
This could include building electric motors in Chinese factories or shipping American-made motors to China to have the magnets installed, according to the
Journal. Trump’s restrictions only cover the Chinese-made magnets, not finished parts such as a fully built motor.