Nora Eckert reports from St. Clair, Michigan that Swamy Kotagiri, the CEO of Magna, a Canada-based auto supplier, is navigating through challenging times caused by industry-disrupting tariffs. Kotagiri expressed the company's struggle with unpredictable events that have disrupted the auto industry's usual stability and rhythm. Magna plays a significant role in the global auto supply chain, with numerous facilities in the U.S., Canada, and Mexico interlinked by the North American Free Trade Agreement.

The auto industry faces unprecedented changes due to President Trump's announcement of 25% tariffs on foreign auto imports. These tariffs are anticipated to increase consumer prices, reduce demand, and impact job growth. Magna, a massive company with operations across the globe, is bracing for the economic repercussions. Kotagiri highlighted the challenges of absorbing the increased costs, foreseeing that consumers would bear a considerable burden.

Adapting to these volatile circumstances, Magna is prioritizing flexibility in its operations. At its EV structures facility in Michigan, the company is prepared to shift production to meet changing market demands. Kotagiri emphasized the need for adaptability, acknowledging that the industry's landscape has undergone significant transformations. However, the viability of smaller suppliers is also in jeopardy, as they struggle to cope with escalating costs and sluggish revenues, creating challenges for their sustainability.