Trump has a giant wrench for China’s auto gears
To understand the untapped potential as well as the dangers of Donald Trump’s trade war with China, look at auto parts.
It’s a huge business, worth almost $400 billion globally. China exports more than $70 billion of car parts and accessories every year, about a fifth of which goes to the U.S. Hundreds of Chinese components, from door handles to steering systems, are embedded throughout American-made cars.
For a U.S. administration looking to exert pressure through tariffs, that might seem like a good place to start. Yet the sector is almost absent from the latest list of tariffs levied against imports from China, save for a few cheap products such as car-door hinges and radio receivers with clocks valued at under $40.