Auto suppliers Novares, Valeo demand upfront payment to cover tariff cost
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 10 2025
0mins
Source: Reuters
Impact of U.S. Tariffs on Automotive Suppliers: French automotive suppliers Novares and Valeo are requiring customers to pay upfront for new U.S. tariffs on car imports, which have increased by 25%, leading to higher car prices and reduced demand.
Response from Automotive Companies: Both companies are seeking full compensation for the tariff costs from their customers, with Valeo reporting that over 50% of their clients have agreed to this arrangement, while noting that only certain imports from Mexico and Canada are currently affected.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
