REPORT: Tariffs trigger global auto shake-up

Global tariffs cause local shifts

Will the GCC feel the ripple effects of the sweeping global trade reforms that are reshaping the automotive sector?

The April 2025 rollout of new US auto tariffs has set a complex realignment of global automotive strategies in motion.

With new duties imposed on imported vehicles and components, the policy is beginning to influence production decisions, supply chain routes and pricing structures across multiple regions.

The policy’s reach extends far beyond US borders, prompting strategic shifts among manufacturers in Asia, Europe and the GCC.

While some trading partners have received limited relief measures, the overall disruption continues to reshape the industry’s competitive landscape.

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