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Tariffs Loom Over CES 2025 as Auto Industry Faces Cost Uncertainty

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Tariffs,CES 2025,Auto Industry

The Consumer Electronics Show (CES) in Las Vegas, traditionally focused on consumer gadgets and technology, is set to be dominated by discussions on tariffs. President-elect Donald Trump's proposed tariffs on imports from countries like Canada, Mexico, and China have raised concerns about increased costs for businesses and consumers. Companies attending CES, including automakers, may face questions about their plans to mitigate supply chain disruptions, such as shifting production to the U.S.

Auto and tech giants showing off their latest innovations at the CES trade show in Las Vegas next week can expect a barrage of questions on a topic that is usually not central to the consumer-focused event: tariffs.

CES 2025, formerly known as the Consumer Electronics Show, runs Jan. 7-10 and is used to debut products ranging from new automotive technology to quirky gadgets, as well showing new ways to use artificial intelligence. Among the highlights this year is a keynote speech from AI chip giant Nvidia’s celebrity CEO, Jensen Huang.

Nearly half of new cars sold in the U.S. as well as a significant share of parts on the rest are made elsewhere, according to estimates from Edmunds. European and American car makers could lose up to 17 per cent of their combined annual core profits if the U.S. imposes import tariffs on Europe, Mexico and Canada, according to an S&P Global report.

“Add to this supply-chain uncertainties and labour shortages and it’s clear that many suppliers are in dire straits,” he said. “The scenario planning is in hyper mode.”

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