Sarwant Singh of Bloomberg reports that Trump’s agenda prioritizes American manufacturing and eases business regulations, benefiting the automotive industry. Singh writes:
Now that Election Day has come and gone, and the victor declared, I don’t mind saying that I’d had my eye on the 2024 Presidential Elections to see who would be controlling America and, more importantly, to me at least, how the results would impact the automotive industry. On November 6, 2024, Donald Trump was declared the winner of the 2024 Presidential Election and will become the 47th President of the United States when he is sworn in on January 20, 2025. His victory, and close association with Elon Musk, has led to a lot of speculation on the future of America’s automotive industry.
Escalating Tariffs on China
If you’re anyone related to the automotive industry, you’ll remember that back in 2016, when Trump was in the White House, a series of tariffs were imposed on auto parts and vehicles imported from China—25% on Chinese-made vehicles, including cars, trucks, and auto parts imported from China. In March 2018, this was expanded to include steel and aluminum imports as well—25% on steel and 10% on aluminum. The tariffs impacted all industries, including automotive. Fast-forward to 2024, and these have not only remained unchanged, but as of 2024, the Biden administration has announced plans to increase the tariff on electric vehicles imported from China from 25% to 100%.
The decision comes as part of a broader strategy to protect American industries and promote domestic manufacturing and is in response to China’s extensive subsidies and non-market practices, which have contributed to a 70% growth in Chinese EV exports from 2022 to 2023. […]
Trump’s agenda prioritizes American manufacturing and eases business regulations, benefiting the automotive industry. His ‘America First’ trade stance includes increasing import tariffs to encourage foreign semiconductor companies to establish US-based factories. While the CHIPS Act faces challenges in execution, there’s concern that Trump 2.0 could undo efforts to establish semiconductor plants and jobs in the US, potentially jeopardizing years of progress. […]
So, what will Trump 2.0 mean for America’s autos? Short-term relief from eased mandates and protectionist trade policies? Though this may be true to some extent, it will be at the expense of global competitiveness. For consumers, this could mean higher prices and limited options. Tesla’s advantage may grow, though resilience and adaptability will be crucial for industry survival.
Read more here.
