Trump's global trade war comes to Alabama
Airbus’s plant in Mobile turns out A320 planes at a rate of five a month. Its output is expected to double by 2023 with the addition of a production line for the A220 model, a move that will bring at least 600 jobs with it. If, that is, the trade wars don’t get in the way. “Any tariffs applied to major components—fuselages, wings—would see an impact to our business model,” says Daryl Taylor, the Airbus executive in charge of manufacturing at the Mobile plant. He says 40% of the cost of the planes made there is spent on avionics, engines, and other parts sourced in the U.S. The Trump administration has already turned down a request from the company to exempt from tariffs sections of the A220 that are made in China.
Mercedes is building a new battery plant near its factory that will one day supply batteries for the electric vehicles the German automaker expects to build there. If Trump goes ahead with his threatened tariffs on auto parts, that could raise the price of myriad imported components beyond batteries, throwing a wrench into Mercedes’s manufacturing strategy. Potentially at risk: some of the 8,000 jobs the automaker and its suppliers have brought to Alabama.
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