How the auto industry changed after Donald Trump was elected president

After Donald Trump was elected President of the United States, many new tariffs on imported cars changed, and at the same time reversed the policy of supporting electric cars.

According to Reuters on November 7, US President Donald Trump said he plans to start canceling vehicle regulations of the Environmental Protection Agency and the Department of Transportation on his first day in office, and is considering cutting or eliminating electric vehicle tax breaks as well as other incentives.

Many policies on the US auto industry will change when Donald Trump is elected President. Photo: AIJ

Those regulatory changes could give automakers more flexibility to build more profitable gas-powered SUVs and trucks, but raise questions about the future of billions of dollars spent on electric vehicles.

The Zero Emission Transportation Association, which includes electric carmakers Tesla, Rivian, Lucid and battery maker LG, said it was ready to work with Trump.

“The next four years are critical to ensuring that these technologies are developed and deployed by American workers in American factories,” said the association.

Elsewhere, Tesla shares rose 15% at the close on November 6 as investors bet the company would benefit from CEO Elon Musk's close relationship with the new President.

Meanwhile, the American Trucking Association on November 6 called on Trump to replace the US Environmental Protection Agency's (EPA) strict emissions standards with national emissions standards that are technologically achievable and consistent with the operating realities of essential industries.

At the same time, Donald Trump plans to cancel California’s own vehicle emissions rules, as he did in 2019. He will also decide how to spend billions of dollars in electric vehicle charging grants.

Notably, Mr. Trump has repeatedly warned that he would impose tariffs of 200% or more on imported cars from Mexico and could also impose tariffs on Asian and European cars. President Donald Trump also wants to control Chinese car imports, but has left the door open for Chinese automakers to build cars in the United States.

“We’re going to give incentives, and if China and other countries want to come here and sell cars, they’re going to build plants here and they’re going to hire our workers,” Trump told Reuters in August.

Mark Williams, president of a market research firm, said that if China were to be cut out of the system of producing parts and components for automakers and there were no alternative sources of supply, the country's auto support industry could be disrupted.

Honda produces about 200,000 cars a year in Mexico, with 80 percent of those exported to the U.S. If the U.S. imposes permanent tariffs on cars imported from Mexico, Aoyama said Honda would have to consider shifting production.

Toyota, meanwhile, builds Tacoma trucks at two plants in Mexico and sold more than 230,000 of them in the U.S. last year. President Donald Trump’s high tariffs on Mexican imports could prompt the automaker to move production of a vehicle like the Tacoma to San Antonio, Texas, a source said. A Toyota spokesman declined to comment.

Source: https://congthuong.vn/my-nganh-cong-nghiep-o-to-thay-doi-ra-sao-sau-khi-ong-donald-trump-dac-cu-tong-thong-357343.html