Tag Archives: avoidance tariffs

Escaping ChinAmerica: the Car Industry

More than 60 auto suppliers in the U.S. today are owned by companies located in China. Those include large manufacturers of air bags, automotive glass, and steering systems. Overall, Chinese companies have amassed ownership stakes in about 5% of 10,000 suppliers in America….In April 2026, more than 50 House Republicans wrote to Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer. They urged the Trump administration to block Chinese automotive and battery companies from manufacturing in the U.S. Their letter warned that Chinese investment in the American auto-supply chain poses risk to domestic industries.

Some car companies have been taking steps to bring some component production home. Tesla started requiring its suppliers to exclude China-made components in the manufacturing of its cars in the U.S….Across the world, Chinese ownership of some of the biggest suppliers in the industry has steadily increased. In 2012, one Chinese company ranked among the top 100 global suppliers, , that number had jumped to 13 suppliers, and it is expected to reach 22 by the end of the decade.

In the U.S., carmakers have become closely tied to the work of Chinese-owned suppliers. Fuyao Glass America, a glass supplier, supplies Detroit’s three and other domestic auto manufacturers. Another company, CATL, is the world’s largest electric-vehicle battery manufacturer. Nexteer, a publicly traded global manufacturer of steering systems and drivelines, is controlled by a Chinese conglomerate and makes parts for top carmakers in the U.S. and China

Excerpt from Ryan Felton, Chinese companies have amassed ownership stakes in about 5% of 10,000 auto suppliers in America, WSJ, May 9, 2026

The Essence of Capitalism: Shelters

SKU Distribution in Mesa, Arizona., is experiencing rapid growth as companies seek to access foreign-trade zones and navigate rising U.S. tariffs. Companies can use foreign-trade zones to defer tariff payments until products are sold, which operators say helps them manage supply chains and avoid bottlenecks. The foreign-trade zone program dates back to the 1930s, with roughly 260 such facilities now in the U.S. In some, inquiries from companies have recently quadrupled.

SKU Distribution had just one customer in 2024 at its Mesa, Arizona, warehouse. In 2025, it is teeming with new business from companies storing items such as aluminum poles, ice picks, carabiners and firearm safes. That is because the warehouse is the ultimate U.S.-based tariff refuge

Arizona is the foreign-trade zone capital of America, its facilities employing more workers than those of any other state, Commerce Department data shows. Apple, Intel, Honeywell Aerospace, Sub-Zero and Ball Corp. all manufacture within the Arizona facilities, together processing more than $7.5 billion in merchandise in 2023. The program has helped turn this strip of the Phoenix-area desert into a chip-making hot spot. Now, Trump’s tariffs are drawing a clientele of smaller companies looking for refuge from the trade war.

Excerpt from Owen Tucker-Smith, Inside the Arizona Warehouse That Has Become Shelter in Tariff Storm, WSJ, May 12, 2025

See also United States as a Tax Haven