Global automotive suppliers are evaluating how much production they can shift to the United States or closer regions to protect themselves from tariffs promised by President-elect Donald Trump, Reuters reports, citing industry sources.

The auto industry has already endured eight years of American protectionism—real and threatened tariffs during Trump’s first term, followed by additional tariffs and the Inflation Reduction Act under President Joe Biden. Most of these measures targeted China, including Biden’s administration’s proposed ban on Chinese automotive software and hardware on American roads.

However, Trump has pledged to go significantly further by introducing a blanket 10% tariff on all global imports into the U.S. and an even steeper 60% tariff specifically targeting Chinese products. In late November, he promised to impose 25% tariffs on imports from Canada and Mexico upon taking office on January 20.

Such high tariffs would be difficult to pass on to consumers, rendering many automotive components produced in lower-cost markets unprofitable. In the case of China, these tariffs could make selling products in the U.S. nearly impossible.

“Anyone can do the math,” Paul Thomas, head of Bosch’s North American division—the world’s largest automotive supplier—told Reuters. “If you’re talking about 10%, 20%, 60% tariffs… you have to ask, ‘OK, how many scenarios make sense, and which ones should we pursue?’”

“We’ve already started working on several of these even before he [Trump] takes office,” Thomas added.

Speaking on the sidelines of the CES technology conference, Thomas cited a theoretical example of a general electronic control unit currently manufactured by Bosch in Malaysia or similar markets. Now, he said, “We’re considering whether to produce it in Mexico or Brazil… places where we already have a presence.”