As the U.S.-China trade war expands into the auto, steel and rare earths sectors, few companies are feeling the pressure more than top Japanese car parts supplier Daido Steel.
The supplier to Honda and other major marques is facing a trio of headwinds: a 50% tariff on U.S. imports of steel, a 25% duty on foreign-made cars and a levy on parts, and China’s tightening of exports of rare earths — minerals critical to make magnets for car motors.
"They’ve started putting up walls,” CEO Tetsuya Shimizu said in an interview at Daido Steel’s headquarters in Nagoya. "This will have a massive impact on the stability of the global economy.”
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