As Donald Trump prepares to take up the presidential mantle again as 47th President of the United States following a victory buoyed by several swing state wins, including Wisconsin, Pennsylvania, and North Carolina, the American automotive industry is likely to see some significant changes moving forward.
Among these shifts, Trump’s win may herald the imposition of significant tariffs on at least some imported vehicles, affect the continuity of the federal EV tax credit, and change the tariff structure related to imported vehicle parts as well.
As of this writing, votes are still being counted in Michigan, though Trump appears to be favored to win by a narrow margin of about 2 percent. A victory for the Republican candidate in Michigan might indicate a split between the leadership and rank-and-file United Auto Workers (UAW) union members such as appeared in the United Steelworkers union, whose leaders endorsed Kamala Harris, but a number of whose ordinary members showed up at Trump rallies and may have helped flip Pennsylvania red.
UAW president Shawn Fain said in July that “Donald Trump in the White House would be a complete disaster for the working class.” AFL-CIO president Liz Shuler said that American unions “are standing strong with President Biden and Vice President Harris because they’ve stood strong with us.” Meanwhile, on the Michigan campaign trail, Trump argued “the auto industry is being assassinated” by the EV push and added “we should not be forcing consumers to buy electric vehicles they don’t want to buy.”
Despite Trump’s opposition to EV mandates, his win has caused the shares of Tesla, owned by newly minted Trump ally Elon Musk, to rise in trading according to a report from Reuters. The once and future president has said he will make Musk the leader of a federal efficiency commission.
The billionaire has also said he will slap a 200-percent tariff on Mexican-produced vehicles if elected. General Motors brings up to 70,000 vehicles into the U.S. from Mexico annually, operating plants at Ramos Arizpe, Silao, and San Luis PotosÃ. GM models partly or wholly produced in Mexico include the Cadillac Optiq, the Chevy Blazer, the Chevy Blazer EV, the Chevy Equinox, the Chevy Equinox EV, the Chevy Silverado 1500, the GMC Sierra 1500, and the GMC Terrain.
EV entrepreneur and Donald Trump ally Elon Musk
German cars might also get tariffs imposed during the second Trump presidency, with the candidate noting, “I want German car companies to become American car companies,” explaining, “I want them to build their plants here.” German auto stocks have been sent into a tailspin by the election results, but Oliver Zipse, chief executive of BMW, pointed out that his company at least has “a very, very large footprint in the USA” and that “we shouldn’t be too nervous about what might happen.”
In October, Trump also proposed making interest on auto loans tax deductible, a move he claimed “will stimulate massive domestic auto production and make car ownership dramatically more affordable for millions and millions of working American families.”
