Trade Policy Reshaping Global Supply Chains

Tariffs and protectionism are driving major supply chain shifts: Nissan targeting 80% US production, Hyundai building in Turkey to avoid EU tariffs, JLR-Stellantis US-specific models, and new digital border logic targeting software-defined vehicles. Senate bill to bar Chinese-connected vehicles and Toyota's $3.6B Texas expansion underscore the zero-sum market share fight. LG Energy Solution's Lansing plant now supplies Toyota and Tesla instead of GM, highlighting battery supply realignment. Additionally, RAMageddon—AI memory chip demand—is driving up car prices, with Ford, GM, VW flagging $1B+ in added materials costs, even affecting low-end chips.