Auto parts are quite the travelers! On average, a single auto part crosses the U.S.-Mexico border about eight times during the manufacturing process. This back-and-forth movement is part of a highly integrated supply chain that combines the strengths of both countries to produce the final product efficiently.
If a part's first journey is from Mexico to the U.S., it would typically cross back into Mexico and repeat this back-and-forth pattern about three more times, resulting in eight total crossings before being incorporated into the final product.
The value of an auto part during its first border crossing can vary widely depending on the type of part and its role in the supply chain. However, a typical value might range from $50 to $500 for standard components, with more specialized or high-tech parts potentially exceeding this range.
So let's apply some tariffs.
I make this assumption: the tariff is applied each time the part is imported to the United States.
Here is a series of images showing the effect of a 25% tariff on a $500 auto part during its metamorphotic eight border crossings.
First US Importation
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