Auto supplier distress rises, rare earth supply from China continues

U.S. automakers expand domestic manufacturing

Aligning with the U.S. administration’s goal to boost domestic manufacturing, automotive companies are announcing investments in new domestic plants and production. Stellantis said it will expand its U.S. manufacturing by 50%, adding jobs, reopening plants, and returning domestic assembly for some models. Over the next four years, it plans to invest $13 billion in Illinois, Ohio, Michigan, and Indiana.

General Motors announced a $4 billion investment across plants in New York, Michigan, Kansas, and Tennessee to ramp up production of gas and electric vehicles. These moves underscore the need for flexible logistics strategies and partnerships to navigate tariff shifts and reconfigure global supply chains as needed.

Tariff-related distress hits some suppliers more than others

A study by the financial analytics company RapidRatings found that roughly 20% of automotive suppliers were in financial distress even before tariff hikes started earlier this year. With the tariffs, the average distress rate rose to 23%, but certain supplier sectors are more impacted than others.

Primary metal manufacturers' distress rates reached 35%. Plastics and rubber products manufacturers’ distress rates rose to 39%. Many of these suppliers are major players in automotive production. Bankruptcies among them would result in widespread production impacts.

C.H. Robinson offers U.S. Customs Analytics, ACE Import Intelligence, and a Sourcing Analysis Tool to help manufacturers understand and mitigate tariff impacts, as well as providing support for automotive companies seeking to lower supply chain expenditures.

Rare earth supply-chain shock warded off—for now

Following trade talks at the APEC Summit, there’s cautious optimism that rare earth export restrictions have been averted at least temporarily. China had announced sweeping controls on rare earth elements, requiring licenses for any product containing more than 0.1% Chinese-sourced materials or made using Chinese refining or magnet-making technologies—even if produced abroad.

With China responsible for over 90% of global rare earth processing, the move raised alarms across advanced manufacturing sectors. U.S. Treasury Secretary Scott Bessent called it “China pointing a bazooka at the supply chains and the industrial base of the entire free world.”

The automotive industry, already facing supply challenges, relies heavily on rare earth magnets for motors used in steering, braking, and other systems. Europe faces added pressure from a surge in Chinese plug-in hybrids exploiting a tariff loophole—leading to a 17,000% increase in sales. While details are still emerging, a one-year pause announced on the proposed export restrictions offers breathing room for the United States and its allies to diversify supply chains and reduce long-term dependency.

EV charging infrastructure growth has slowed

Despite 4,000 added in Q3, expansion of fast-charging stations for electric vehicles (EVs) in the United States has slowed this year:

• Compared to 2024, installations of new fast-charging ports were down 12% through Q2.
• Larger charging stations are popular. Stations with eight or more stalls account for 27% of all locations, up from 23% in Q2.

Further insights on EV charging trends include:

• Nearly 45% of all new stations in Q3 were deployed by Tesla.
• While all states added at least one new fast-charging station in Q3, the majority were installed in California, Texas, New York, Florida, and Illinois.
• During the summer travel season, fast charger usage increased in 45 states.

EV charging infrastructure subsidies restored

The U.S. administration has restarted funding for EV charging infrastructure. It had paused these funds but was required to continue the program after losing a court case.

Established in 2021, the National Electric Vehicle Infrastructure (NEVI) program aimed to create a nationwide highway network of roughly 500,000 public chargers. The remainder of the $5 billion originally budgeted can now be allocated. It will focus on gas stations and truck stops—businesses that own the land they’re located on—in the interest of accelerating project delivery.

Since every installation and every location is different, EV charging companies need a logistics provider with project management credentials. The C.H. Robinson consulting team has extensive experience managing these small-scale, location-based projects.

Tariff updates

• Reciprocal tariffs: On November 5, the U.S. Supreme Court heard oral arguments in the case that will determine whether the president has the authority to impose tariffs by declaring a national emergency. Reciprocal tariffs on imports from most countries were established under the International Emergency Economic Powers Act (IEEPA), as were tariffs imposed on goods from China, Mexico, and Canada with the goal of reducing the flow of fentanyl. If the Supreme Court determines the president does not have this authority, it’s uncertain whether refunds will follow. A ruling is expected by early to mid-December.
• China: An interim U.S. deal with China announced in writing November 1 provided some relief for automotive importers. It included a decrease in the drug-related tariff from 20% to 10%, set the reciprocal tariff at 10% for a full year instead of it rising to 34% on November 10, and averted the threat of an additional 100% tariff. These measures are scheduled to go into effect on November 10. See the White House fact sheet for more details.
• Canada: On October 25, the U.S. administration said it would add 10% to tariffs on goods from Canada. It’s not clear when this measure will take effect and which goods will be affected. Most Canadian exports to the United States are exempt from tariffs under the United States-Mexico-Canada Agreement (USMCA). Goods not covered by USMCA have been subject to a 35% tariff since August 2025.
• Trucks: The 25% tariff on medium and heavy-duty trucks and truck parts including engines, transmissions, tires, and chassis took effect November 1. This tariff will also affect trailers.
• South Korea: After months of negotiation, the United States agreed to lower tariffs on South Korean automobiles from 25% to 15%, matching the rate for Japanese automobiles. See the White House fact sheet for more details.
• New Asia deals: The United States reached tariff deals with Malaysia, Thailand, and Vietnam. Each country agreed to eliminate tariffs on U.S. goods, with some exceptions. Imports to the United States from Malaysia and Thailand will face a 19% tariff, and those from Vietnam 20%. In each case, exceptions apply. 

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