Tesla supplier Panasonic Energy to end supply-chain dependence on China amid Trump’s tariff pledge
Tesla TSLA.O supplier Panasonic Energy plans to eliminate its supply-chain dependence on China for electric vehicle batteries made in the United States, following President-elect Donald Trump’s pledge to raise tariff imports on Chinese goods.
The comments from Allan Swan, President of Panasonic Energy of North America, highlighted how Trump’s decision has forced companies around the world to reassess their manufacturing processes.
Panasonic Energy, which supplies batteries to Tesla as well as other automakers, is a unit of Japanese electronics giant Panasonic 6752.T.
Trump has vowed to impose tariffs of 10% on global imports into the U.S. along with a 60% tariff on Chinese goods.
“We do have some Chinese supply, but we don’t have a lot,” Swan said. “And we have plans not to have some, as we go forward, and that has accelerated.”
The bulk of Panasonic Energy’s U.S.-made batteries come from overseas suppliers, including ones from Canada, Swan added.
Reuters last month reported that Trump’s transition team recommended tariffs on battery materials globally. The Washington Post on Monday reported his aides were exploring narrower tariff plans covering critical imports, which Trump later denied.
In the United States, Panasonic Energy operates a factory in Nevada and plans to open a second U.S. plant in Kansas this year.
Japanese firms are bracing for the uncertainties around the second Trump presidency, especially in his trade policies.
Separately, the Chinese Foreign Ministry said on Tuesday that China attaches “great importance” to the remarks made by Donald Trump in response to his comments on Monday about ongoing talks with Chinese President Xi Jinping through their respective aides.
“China is willing to promote the stable, healthy, and sustainable development of Sino-U.S. economic and trade relations,” spokesperson Guo Jiakun said, citing “win-win” cooperation.
Guo did not confirm that any exchanges had been made through the leaders’ aides, but said China and the U.S. have maintained communications through various means.
Trump invited Xi and other foreign leaders to his inauguration in Washington later this month, but experts say the Chinese leader is unlikely to attend.
