The president stated that Trump’s new tariffs on Bosch China would result in a "relatively minor" effect.

      David Xu, the president of Bosch China, spoke to reporters in Shanghai on Thursday, May 8, 2025. Credit: Bosch

      German auto parts manufacturer Robert Bosch GmbH anticipates only a minor impact from the new US tariffs on its Chinese operations, due to its global structure and robust local supply chain, despite ongoing uncertainties regarding overall operations, according to Bosch China president David Xu. “The majority of the materials used in our products are sourced locally [...] and because we have established a global framework, while the new US tariffs will affect Bosch China, I believe the effect will be relatively minor,” Xu stated. However, the recent Chinese export controls on rare earths have temporarily affected Bosch, as these materials are crucial for manufacturing electric motors. “We are currently applying for export licenses from the Ministry of Commerce,” Xu added. His remarks highlight how multinational companies are adapting to the current trade tensions between China and the US. A recent survey from the European Union Chamber of Commerce in China revealed that approximately 44% of surveyed companies were impacted by Beijing's tariffs on US imports, yet some have managed to capture market share from their American competitors, as reported by the Financial Times on Thursday. On the same day, Stefan Hartung, Bosch’s board chairman, indicated during a conference call that the company would not be able to assess the tariffs’ impact on its operations until later in the year, forecasting a slight sales increase of up to 3% this year, according to Reuters. Bosch has maintained its operating margin goal of 7% for 2026. US President Donald Trump’s decision to impose a 145% tariff on Chinese imports has compelled automakers to reevaluate their strategies. Japan's Nissan recently reduced its plan to export up to 200,000 vehicles annually from China to the US, while Mercedes-Benz on April 30 retracted its earnings forecast for 2025, indicating a potential profit drop if tariffs remain. Tesla has halted sales of its imported vehicles in China and is also seeking a special export permit from Beijing to manufacture humanoid robots with magnets.

      Jill Shen is a technology reporter based in Shanghai, covering topics such as Chinese mobility, autonomous vehicles, and electric cars. You can reach her via email at [email protected] or on Twitter at @jill_shen_sh.