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Nidec, Daimler face less attractive choices if magnets attract tariffs

China 2820 Cons. Discr. - Autos 1074 Info Tech - Tech Hardware 707 Tariffs 1741 U.S. 5046

The Biden administration’s critical supply chain review included the proposal for a section 232, national security, investigation of imports of neodymium magnets used in automotive and defense products. Suppliers from China rose to 75.8% of total U.S. imports in Q1’21 from 70.2% in 2020, crowding out shipments from allied nations in Europe and Asia ex-China. If tariffs are applied that may require Nidec and Daimler among others to switch sourcing. It may also result in increased supplies to Mexico which would allow onward use in the U.S. via the USMCA trade deal. Nidec also imported dire...

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