Automakers brace for new tariffs, EV changes under Donald Trump presidency

Automotive manufacturers in the global automotive sector are preparing for potential tariffs on Mexican vehicles and electric vehicle policy rollbacks under President-elect Trump’s administration.

On his first day, Trump plans to roll back vehicle regulations and consider cutting or removing electric vehicle tax credits.

The regulatory changes could give automakers more freedom to produce profitable gas-powered SUVs and trucks.

However, they raise concerns about the future of significant investments in EV battery production and manufacturing.

The Zero Emission Transportation Association, including Tesla, Rivian, Lucid, and LG, expressed willingness to collaborate with Trump.

Mark Williams, president of Strategic Development Group, anticipates increased demand for his company but warns that tariffs may raise costs.

The American Trucking Associations urged Trump to replace strict EPA tailpipe emissions regulations with more feasible national standards for the industry.

South Korea’s trade minister said companies from his country would likely invest more in the U.S. if Trump imposes higher tariffs.

Trump plans to revoke California’s authority to set its own vehicle emissions rules, a move he made in 2019, which President Biden later reinstated.

Trump will also determine how to allocate billions of dollars in EV charging grants.

Trump’s Tariff Threats on Imported Vehicles Could Reshape Global Automotive Manufacturing

Trump threatened 200% tariffs on Mexican vehicles and proposed incentives for foreign automakers to build U.S. plants and hire workers.

South Korea’s trade minister predicted that higher tariffs could encourage increased investments in the U.S. by Korean companies.

Honda produces 200,000 vehicles in Mexico annually, with 80% exported to the U.S.; tariffs may lead to production shifts.

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