German automotive supplier Robert Bosch GmbH is only expecting a small impact from additional US tariffs on its China business thanks to the company’s global layout and a strong local supply chain, despite looming uncertainty over the overall operation, the president of Bosch China David Xu said on Thursday.
“Most of the materials used in our products are produced locally […] and since we’ve built a global layout, new US tariffs will have an impact on Bosch China but I think it’ll be a relatively small impact,” Xu said. Nevertheless, China’s new export controls on rare earths has a certain impact on Bosch temporarily, as it’s essential for the production of electric motors.
“We are in the process of applying for export permits from the Ministry of Commerce,” Xu added.
The comments offered a glimpse into how multinationals have moved to navigate the current trade dispute between China and the US. A recent survey by the European Union Chamber of Commerce in China showed that about 44% of responding companies were affected by Beijing’s tariffs on US goods, and yet some have had a chance to win market share from their US rivals, the Financial Times reported on Thursday.
On the same day, Stefan Hartung, Bosch’s chairman of the board of management, told a conference call that it would not be able to estimate the impact of tariffs on its business until late in the year, projecting sales to grow slightly by up to 3% this year, Reuters reported. The company maintained its operating margin target of 7% for 2026.
US President Donald Trump’s move to impose a 145% levy on Chinese imports has forced automakers to reassess their plans. Japan’s Nissan recently scaled back its plan to export up to 200,000 vehicles annually from China to the US, while Mercedes-Benz on April 30 withdrew its earnings guidance for 2025, warning of a profit decline if tariffs remain in place all year. Tesla has suspended sales of its imported vehicles in China while also trying to get a special export permit from Beijing to make humanoid robots with magnets.
