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02:43
Spain: US tariffs deal heavy blow to small auto suppliers in Spain
A Spanish auto supplier has raised concerns about U.S. tariffs on imported automobiles and auto parts, highlighting that the policies not only affect large multinational corporations but also severely impact small businesses. Tecnica del Decoletaje, a family-owned business based in Madrid, has specialized in machining parts for precision tools for over 60 years. The U.S. has long been a key overseas market for the company. In a recent interview with China Global Television Network, Mario Lobato, managing director of Tecnica and the son of the company's founder, discussed the firm's deep ties to the automotive sector and the challenges posed by the U.S. tariffs. "We've almost always been closely linked to the automotive sector, which has been our core industry. Currently, about 40 percent of our products are directly exported, and around 90 percent are incorporated into other assemblies that are also sent abroad from Spain. We are suppliers to companies like Valeo and Bosch, and we deliver directly to them," said Lobato. "We do not export to the United States ourselves, but our parts are included in assemblies that are later installed in cars which are exported to the U.S. The entire automotive value chain will undoubtedly be affected. No doubt. It's possible that tariffs could impact up to 35 percent of our production in some way," he added. Rafael Rosa, a skilled lathe operator at Tecnica, also shared his concerns about the rising costs caused by the tariffs, as well as his view on the U.S. using tariffs as a negotiation tactic. "This piece, for example, is embedded in the windshield wiper system. This is where the motor for the automatic wiper arm goes. What happens with tariffs? All the components assembled in the U.S. are then shipped elsewhere. So, whether we like it or not, we end up losing. Tariffs don't only affect multinational companies, they also impact medium and small-scale businesses, because all materials become more expensive. I would like everything to go back to normal. I think these are tactics used to get better deals and better agreements. But of course, along the way, there are many who suffer, like us in this case," said Rosa. Looking ahead, Lobato expressed the belief that the tariffs would eventually be adjusted to balance the interests of both exporters and importers, as U.S. consumers and industries are also bearing the brunt of the increased costs. "There are many products -- electronics, certain technology items -- that the United States simply has to keep importing. They can't just say no. If something suddenly costs 40 percent more, maybe they won't be able to buy it, and then they'll face shortages. I believe everything will balance out. I'm not saying it (the tariff) will be zero-zero, but maybe ten-ten, more or less evening out the tariffs on both sides. That's what I believe, and also what I hope for," the managing director said. SHOTLIST: Madrid, Spain - Recent 1. Interior of workshop of Tecnica del Decoletaje, Spanish auto supplier; 2. Various of production materials, machines, workers; 3. Mario Lobato, managing director of Tecnica, working in office; 4. SOUNDBITE (Spanish) Mario Lobato, managing director, Tecnica (starting with shot 3/partially overlaid with shots 5-6/ending with shot 7): "We've almost always been closely linked to the automotive sector, which has been our core industry. Currently, about 40 percent of our products are directly exported, and around 90 percent are incorporated into other assemblies that are also sent abroad from Spain. We are suppliers to companies like Valeo and Bosch, and we deliver directly to them. We do not export to the United States ourselves, but our parts are included in assemblies that are later installed in cars which are exported to the U.S. The entire automotive value chain will undoubtedly be affected. No doubt. It's possible that tariffs could impact up to 35 percent of our production in some way."; [SHOTS OVERLAYING SOUNDBITE] 5. Various of Tecnica's products; 6. Various of posters of racing car, auto parts; [SHOTS OVERLAYING SOUNDBITE] 7. Various of Tecnica's products; 8. Various of production materials, worker walking, inspecting product; 9. SOUNDBITE (Spanish) Rafael Rosa, lathe operator, Tecnica (starting with shot 8/partially overlaid with shots 10-11): "This piece, for example, is embedded in the windshield wiper system. This is where the motor for the automatic wiper arm goes. What happens with tariffs? All the components assembled in the U.S. are then shipped elsewhere. So, whether we like it or not, we end up losing. Tariffs don't only affect multinational companies, they also impact medium and small-scale businesses, because all materials become more expensive. I would like everything to go back to normal. I think these are tactics used to get better deals and better agreements. But of course, along the way, there are many who suffer, like us in this case."; [SHOTS OVERLAYING SOUNDBITE] 10. Worker inspecting product; 11. Various of worker inspecting product; [SHOTS OVERLAYING SOUNDBITE] 12. Various of machines; 13. SOUNDBITE (Spanish) Mario Lobato, managing director, Tecnica (starting with shot 12): There are many products -- electronics, certain technology items -- that the United States simply has to keep importing. They can't just say no. If something suddenly costs 40 percent more, maybe they won't be able to buy it, and then they'll face shortages. I believe everything will balance out. I'm not saying it (the tariff) will be zero-zero, but maybe ten-ten, more or less evening out the tariffs on both sides. That's what I believe, and also what I hope for."; 14. Various of worker operating machine. [Restrictions: No access Chinese mainland]
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