The U.S. is quickly losing its appeal as a reliable investment destination, with analysts pointing to hefty new tariffs and unpredictable trade policy imposed under President Trump as key reasons for growing uncertainty. President Trump states that the new tariffs are intended to stimulate domestic manufacturing, however, experts predict that consumers are likely to face rising costs and supply chain disruptions as businesses no longer consider the U.S. to be a reliable trade ally. The automotive industry is particularly vulnerable to these changes given its heavy reliance on global trade.
So far, the Trump administration has introduced a 25-percent tariff on vehicles assembled outside the U.S., as well as a 25-percent tax on vehicles and raw materials such as steel and aluminum. The 25-percent tax on vehicles is expected to extend to automotive parts next month. Chinese imports have also been hit with massive new tariffs upwards of 145 percent.
Per a report from Automotive News, Boston Consulting Group’s Felix Stellmaszek states that members of the automotive industry have come to realize that the auto sector is no longer “a global industry,” while Canadian Prime Minister Mark Carney states that “the old relationship [Canada] had with the United States, based on deepening integration of our economies and tight security and military cooperation, is over.”
Others point to the Trump administration’s policies as destabilizing.
“The Trump administration treats international rules as games. Its actions are totally unpredictable. The damage of such actions on trade is more potent than tariffs,” said the director of Asian forecasting at GlobalData, John Zeng.
The U.S. has historically operated within the frameworks of global trade bodies like the World Trade Organization (WTO), promoting consistent, non-discriminatory trade rules. Trump’s preference for bilateral, deal-by-deal negotiations stands in stark contrast to the free trade norm, injecting considerable unpredictability into trade relations. As a result, foreign investors are wary of the U.S., now considering it a potentially high-risk environment for long-term business.
Automakers are already feeling the pressure with higher vehicle prices, import delays, and production disruptions, plus the added uncertainty of a potentially massive overhaul to business strategy as companies look to regionalize supply chains and avoid tariff exposure. GM, for example, recently announced a production increase at its facility in Fort Wayne, Indiana. However, re-shoring production is a slow and expensive process, and with constantly fluctuating trade policies, the way forward isn’t always clear.
Comments
Contrary to what top people in the field are saying. Of late, this forum has taken a decided left bent. It shouldn’t be left or right, just pure automotive.
What top people are saying now is a good time to invest here? Please be specific. ‘Cuz I’m pretty certain that I can come up with at least one person who agrees with the premise of this article for each one you come up with who doesn’t.
Nvidia, Toyota, TSC, and just yesterday, IBM moved 150 billion from what was going to an unspecified peer adversary that we all know was just reinvested in the American economy. In 2 months that makes over 2 trillion in investments that the farce news hasn’t covered, or a 7% growth to our economy in just 2 months simply from the addition of tarrifs.
This analyst needs to be fired for blatant malpractice.
Also, if you disagree, please show your math.
Guru focus, more left leaning is the 2 trillion number. Fox business has it currently at 5 billion.
I agree with you and wouldn’t be surprised to find that the narrative for this article came from CNN or MSNBC.
Jonathan Lopez is from So. CAL….. MSNBC’s beltway.
And just saying, as far as investing goes, yes, invest sooner rather than latter. If you thing the economy is bad, invest now rather than after the dramatic recovery. Much higher returns. Just ask all those who didn’t invest in Bitcoin when it was under 1000$ 🤬🤕😔
Agreed, politics should be left out, but maybe Alex does this to get more comments going on the website which could = more sponsors, which = more $$$. As with most things, you can usually trace actions to $$$$.
If tariffs are so bad, why does every country in the world use them successfully against us?
We consume 39% of the world’s goods, so any threats to leave the US market are idle. If you make your products here, no tariffs and 15% corporate taxes. How does that tax rate compare with others?
53 24 i Rate This Comment
Or why do they respond with even higher tariffs in the name of defending the ones they have already in place? Trump has made it clear his focus is a level playing field even if it means dropping all tariffs. I guess they’re not so bad after all if these countries are defending their own tariffs like its their nuclear stockpile.
You lost me at “Trump made it clear” – no such thing
When the political crap starts, I’m out! See and here enough elsewhere! I joined gmauthority for the history and future of GM vehicles and the automotive industry news NOT the political crap!
i understand you fully, find GM Authority still a good summary of photos interesting cars of past, and to see which models GM will make, but sincere, A. it is rare to see an elegant and beautiful model today. B. am the one to interested in rich car owners here what they have and long texts, am seeing daily here just because some rare good photos
Don’t blame the blog. It is informative and interesting. Our nation is organized around the car. Therefore it is inherently political. When you drive on the right side of the road or see the State Police patrolling Interstate or courts…. Whether a vehicle can be searched, seized, impounded. Even what sort of vehicle one is allowed to drive. Nobody today can sell you a vehicle without safety belts and a cardboard gas tank… it’s endless. A car is probably the most regulated device in this country. With good reason.
Guns airplanes and medicine is more regulated. Food is also over regulated. The Roman empire had a saying, “let the buyer beware” and their unregulated society lasted 1100 years. Totalitarian regimes, the epitome of regulation, tend to last decades. Man will be free, and it’s best we learn that lesson now before we learn it the way the Bolshevists did.
So, you want some quack that sells you sugar water as a cure for cancer. It used to be that way. Unregulated. Get an old magazine. Look at the ads. Food is not tightly regulated, over 5k people die per year from food poisoning. Guns, any aggrieved White male who can’t get laid with some rage or grievance against a brown person can walk into a school or Walmart or church or grocery store in a black neighborhood and kill people with a gun that’s easily purchased on any corner in this country. How is a gun regulated? Educate me.
News flash JIM, we still do, but this time instead of selling opioids mixed with whisky, which would make you forget the pain, now you can buy fentinal laced pills from your local illeg@l dealer. A large part of the problem was the solution the ELIETES came up with was to lace alcohol with rat poison to stop alcoholism. The cartels get paid by our foreign adversaries to do the same with fentinal.
Regulations don’t stop quacks, they actually empower them and make them monopolies. Now you can’t go to your local Walmart or family practitioner for your more dangerous needs in life, you know, an organization that’s known enough to have legal recourse and benefits from helping it’s customers? Guns come into the equation with the early progressive Democrats trying to ban gun purchases amongst the African Americans who then teamed up with the young NRA as they sought self defense from the klan. All regulations did was get them killed. The Columbine shooters as well broke every regulation in the book and still managed to obtain highly outlawed we@pons. Total we@pon bands also did nothing in India this week when Jih@ist assaulted security guards, took their weapons, then attacked more guards and started a rampage, but we don’t hear about that cause it wasn’t a whit-ey.
Don’t know what the laid comment is about. Elon Musk and jelly roll seam to be getting along pretty well. You having issues in the bedroom?
Also several days reports ago. I said that too many people are disrespecting this auto
newspaper. I totally agree with you. Not the political stuff. But the pure “BULLONEY” +
vengeful + hateful comments. And critisze management. And even make things up. Misinformation. No clue as what is happening in the real world. Bunch of “CRY BABIES.”
As William Shatner said. “GET A LIFE”. These people next will say “BEAM ME UP etc. etc.
Same. Irregardless of political leanings I always came to car sites for respite from political nonsense. I stopped going on CarScoops because it became a 50 cent army infested CCP propaganda site so I landed here. Now this is becoming the same. I think I am just going to get my car news from Netcarshow going forwards.
But its getting really hard to get away from this crap. Even LinkedIn is now infested with political nonsense. I stopped using FB and Instagram for this reason and now LinkedIn also.
Agreed. We are bombarded with the poly ticks in so many other places, it does not belong here. Alex likes to poke the bear.
admire… because it has so many millionaires in USA buying a lot of things… strange
And in other news GM can’t build a 6.2 liter V8.
These so called “Analysts” are being pretty anal to be honest. They want the same failed economic policies to continue racking up massive trade and budget deficits. They want cheap imports and low wage service jobs. They want atheistic Globalist BS where we should “Eat ze bugs” and climate change activism at the expense of America’s economic sustainability. Cant be a military and economic superpower if your industrial base is decimated on they way to being destroyed.
Ha! Yeah, we were looking up at every economy on the planet until trump got elected the second time. Now, after just 100 days, we’re on top looking down on them all!
Ya you is right . “YOU ALL” IS looking down at us all. Just like when I go to an “OUTHOUSE”. I look down at the insignificant bugs below me. Better watch out because those bugs may just rise up and bite you in da “GLOUTIOUS MAXIMUS.
It* happening already. They love manure. Better cover you head ??? FEED UP with you + your kind. Do YOU finally get it.
W T F ?
Libs during Invasion of Ukraine: “Condemn Russia!!! Stand in the name of justice for the Ukrainian people!!! How dare Trump appease the aggressor!!!
Libs during a potential but highly probably Invasion of Taiwan: “Taiwan? Taiwan who? Please don’t take our cheap stuff away.”
You got it wrong with Taiwan. TSMC produces at least 90 percent of the worlds most advanced chips manufacturing and is located in Taiwan. No other company can provide its capacity or level of technology. This is why China is so interested to take it over and America will defend it regardless of the color of the administration.
Companies like this make it possible for uneducated people like you to shout their ignorance all over the world.
Yeah we’ll see about that. The point I am making is China is not Russia. The instant anyone has anything to say about their actions (like they rightfully did towards Russia) they will use their trade dependency as a weapon of coercion. Much like Russia did towards Germany which BTW, Trump warned Merkel about getting too close to them. And sure enough, they choked off their gas right before winter. It was thanks to a warmer than usual winter they were able to weather the coercion. But Russia couldn’t get away with much because few are dependent on them. China is a different story. We are fully dependent on them but any attempt we make to rectify it people cry about their Temu and Shein being taken away.
And since you like to issue name calling, I’m not ignorant. I actually listen to those including my own family who lived under authoritarian regimes and know not to take my nice and peaceful life without worry of who may show up or turn me in for where I stand with things here in America for granted.
To add what I was saying. You condemn and sanction Russia for Ukraine, they have nothing they can retaliate with other than attrition. You condemn and sanction China for Taiwan, oh there is tons they can do to do alot of damage.
The other day, I see the cover of the MY Post with a pic of Putin and in huge letters “This is a dictator”. So it made me wonder, would the media do the same if Xi decided ro invade Taiwan? Or will they just keep quiet because there’s too much money involved in Beijing to hurt feelings? Because boy, Biden sure got some heat when he called him one.
Trump will throw Taiwan under the bus in less than a minute.
Yep, they want one world government and both political parties are evil.
Analyst in this case is a political opinion.
This is so unfair to the millions who voted for him for his racism.
Unpredictable trade policies are not conducive to planning long term business investments. The administration is steering the U.S. towards an “America alone”, not “America first” position in the global economy.
Yes!
Question, would you rather be America alone and independent or America integrated, but totally extorted by other countries. That’s really the choice. Yes, I’d rather be alone than fully funding Asians 3% GDP growth year over year and Europeans long vacation hours cause they don’t want to work.
Good question, since the U.S. standard of living hangs in the balance. It is where it is today because of cheap imports.
I’m not sure why “re-shoring” is always a slow expensive process. GM, for instance, has plants like Orion that are sitting idle and other factories running way under capacity. Seems to me, at least some production could be returned quickly.
As for the broader policy, the US needs to take the medicine, suffer the consequences and, hopefully, come out better in the end. WWII was won because we had a massive manufacturing base that was quickly converted for wartime purposes. I believe they called it the “arsenal of democracy”. We’ve been letting that strength slip away since the 1990s but for our long-term security, we must turn that around. We need to produce what we, as a people, need to survive and we should’ve never become dependent on a nation with designs on overtaking us for so many essential items like medicines.
I’m sure it can be done overnight, but Nike makes lots of money off giving sewing machines to babies. New balance makes money here in America doing the same thing, but that extra .1% profit is worth it!!! As such they hem and haw for 4 years and hope nothing gets done. Lordstown could be making Traxs in a month if they cared.
I hate to sound like a Trump lackey but the CEOs that are focused on that one-percent over the long-term survival of their nation and western civilization need to put country first. They need to start looking at things differently. Barra is among the worst in my opinion. She’s been overly focused on China and shifting so much of GM’s business there (essentially all of Buick) and then her relentless EV push makes the US dependent on China for mobility. The US has plenty of oil and gas; an abundant supply. So we can be a mobile population completely independently with ICE vehicles. EVs, however, require a near complete dependence on China for the rare earth materials. Trying to make that shift to 100 percent EVs at this juncture, without domestic supplies of REMs, is foolish. We need to think more broadly,
You say you hate. I don*t see you crying. If you can do better than Ms . Mary Barra.
Why are you not C.E.O. of G.M. ??? No one is stopping you. Opinions are REAR ENDS everyone has one. Some opinions are BIGGER THAN OTHERS. I would never insult you by calling you a “BIRD BRAIN.”
I think it’s less shallow than that. They focus on a 1% quarter to quarter profit, not even their own company’s and careers future! I’d rather spend a buck now, save 10 latter. Surely it is not cost effective to have record vehicle profits then spend the next decade recalling them (it’s not, look at Ford’s lackluster financials) they aren’t thinking of their companies well being, not of their employees or their industrial base. They’re building a house of cards.
I would never suggest of course from your comments that you are a trump lackey.
You said it yourself. And I would never suggest you have the mentality of a
fruit fly. Even though you might sound like one. You have cornered the market
of ” FOOL ISH” . Are you “Moe” by chance.
yep, it’s time for her to be fired from general motors.
Thanks a lot uniparty, especially slick willy for pushing NAFTA down our throats.
Unfortunately, those making decisions simply don’t want to. Perhaps the GM CEO might have to stop making 6 times the salary of Honda’s CEO….just maybe.
DEAR ROCKET SCIENTIST (ooopppsssyy ) I mean Rocket 3. RIGGHHHT put outdated
non computerized equipment in to buildings that are 60 years old+ and falling apart.
G.M.. can do MAJIC + produce computerized machines and install all this equipment in a
few days . According to you. Educate your self . You are obviously not from EARTH.
I bought my first Chevy truck in 1956 and my last in 2018,; the centennial addition. All those
years of pride in American workmanship and bowtie spirit have lost their luster.
Take it from an over the hill old fart-you don’t miss it until it’s gone. It’s gone.
Here in Los Angeles, nearly all of the cars and trucks are imported, GM cars are few and far between. If they love imports so much, and would never consider buying an American car, then let them all pay the 25% tariff, fine with me.
Is this article a deflection from Mary’s incompetence ?
This is actually a deflection. You only know how to spell it (incompetance.)Good for you . Too bad you don*t even know what it means. Obviously. If you did your comment is a perfect example of “IMCOMPETENCE”. BRAVO to you. do find this truth “‘SHOCKING”
ELECTRO24. You are not “WIRED ” for 220 volts. More like a trickle of “ELECTRICITY” in
your brain??? HMMMMM!!!
Come on Electro24 stop voting against my comment over + over again. You is not fooling anyone BUTT yourself. You related to Moe Curly Larry or SHEMP .???
I do my best work after midnite. As you can see. Like shooting fish in a barrel.
The only automotive industry this affects are “American” companies that moved production of the most valuable vehicles to mexico, and import many more from Canada, Korea, China etc.
The majority of “foreign” companies have manufacturing in the US, and Billions of dollars of future investment (not from the big 3 “american” companies) have already been announced.
I don’t like the tariffs, but this article shows more bias than fact. Do better.
*i also like how the article refers to the canadian PM as saying the trade relationship is over…after he moved the headquarter of the companies he chaired to the US…except for the ones he moved to Bermuda to dodge taxes.
Even the “foreign” companies assembling in the US have largely “foreign” supply chains, which may have driven the realization that auto industry tariffs needed to be modified.
Trump has backed off the auto parts tariffs, just like has on a bunch of others. They aren’t sustainable. Next up, he’ll blink on China tariffs for consumer products, because if he doesn’t, there will be supply shortages in 3-6 months.
The most investment is happening right now in generations. Somebody is FOS…