Lucerne International is a Michigan-based company that imports car parts from their Asian factories. They say they can't pass the tariffs on to customers because of long-term contracts with car makers. And the way the global supply chain works means moving production is a long and costly process. CGTN's Dan Williams reports.

Workers at Lucerne International in Auburn Hills Michigan, quickly process a batch of car parts. But many of these parts, that were made at one of their eight factories in Asia, are now subject to a range of tariffs that have been imposed with little warning. Long term contracts with car makers means the company cannot pass those costs on. Mary Buchzeiger is the CEO of the company. She says the U.S. does not have the capacity to make the parts locally. And even if it did, it would take years to set up.

MARY BUCHZEIGER, CEO LUCERNE INTERNATIONAL "I don't think the average American understands the length of time in the supply chain in automotive, to make an automobile. Just to move one part out of that process, could take nine months to a year. Just to actually move it to a different production facility. Let alone build a new production facility, staff it get equipment in and get it up and running."

It's a similar scenario in nearby Northville at CW Bearing, a Chinese company. Many of these bearings systems are used in the auto industry. Jay Click, Vice President of North American Operations says the company had been looking at efforts to ramp up production in the US. But he says they can't invest if the company is losing money because of tariffs.

JAY CLICK, VICE PRESIDENT NORTH AMERICAN OPERATIONS, CW BEARING "To get to automative, it takes three years to launch a new product. Meanwhile, it is going to take money, it is going to take resources. We can't move a product to North America or the U.S. if we're financially strapped by tariffs, it defeats what they are trying to achieve, to bring more jobs and manufacturing to the US, if that is the goal it really defeats the purpose."

Lucerne International currently sells around 50 million dollars of car parts a year. Buchzeiger had also considered opening a manufacturing plant in the U.S. to lower its reliance on Asian imports. But that too is on hold as the tariffs eat away at company profits.

DAN WILLIAMS AUBURN HILLS, MICHIGAN "For now, workers here at Lucerne International are busy processing the latest batch of imports. Management say the tariffs have brought uncertainty to the U.S. auto industry and they fear it could have long term damage."

MARY BUCHZEIGER, CEO LUCERNE INTERNATIONAL "What it means of the US automobile industry is that we are going to start losing that bid for the work. Global work. They are not just going to go, oh the tariffs are gone, well we will just pick it up and put it back in the US, that doesn't happen. So once you lose a platform, that platform has gone for a minimum of seven years. A minimum. And then after that if the design doesn't change, or doesn't change much, they are not going to pick it up and move it just because, once they have already invested the money elsewhere."

Both Lucerne International and CW Bearings hope to earn exemptions from the tariffs. If the tariffs remain, they are concerned not just for their business but for the U.S. auto industry as a whole. Dan Williams, CGTN Auburn Hills Michigan.