Tariff Chaos Threatens Auto Industry: Can Magna Survive?

Navigating a Turbulent Global Supply Chain Crisis Swamy Kotagiri, CEO of Canada-based auto supplier Magna International, stood amidst the whirring robotic arms and cascading sparks of a sprawling Michigan plant, reflecting on the daunting task of managing an industry rocked by unpredictability. The global auto supply chain, once a well-oiled machine thriving on stability and seamless cross-border collaboration, now faces unprecedented upheaval following President Donald Trump’s announcement of a 25% tariff on foreign auto imports at the end of March 2025. Kotagiri’s words carry weight as he describes a series of “black-swan events” that have stripped the automotive sector of the certainty it desperately needs to prosper. With Magna operating 59 facilities in the United States, 50 in Canada, and 33 in Mexico, the company exemplifies the intricate legacy of the North American Free Trade Agreement, a system that wove together production lines across borders to serve some of the world’s...