By DCB Editorial, November 11, 2024
Automakers are preparing for significant policy changes under President-elect Donald Trump, including potential tariffs on imported vehicles from Mexico and other regions, as well as the rollback of electric vehicle tax incentivesand emissions standards. These shifts could encourage the production of more gas-powered SUVs and trucks but pose risks to the future of EV investments and battery manufacturing.
Industry groups like the Zero Emission Transportation Association (ZETA) and the American Trucking Associations (ATA) have expressed a willingness to collaborate with Trump, while calling for a review of tailpipe emissions standards and tariffs. ZETA, which includes companies like Tesla, Rivian, and Lucid, emphasized the importance of the next four years for advancing electric vehicle technology and creating jobs in U.S.-based EV manufacturing.
Trump’s plans also include revoking California’s ability to set emissions rules, a policy change he previously implemented in 2019. His administration has warned of 200% tariffs on vehicles imported from Mexico, which could lead to automakers such as Honda and Toyota shifting production to the U.S. In response, South Korean automakers could increase investments in the U.S., while Chinese automakers may also build vehicles in the U.S. to avoid tariffs.
The potential impact of tariffs on Mexican vehicle imports could lead to increased demand for domestic manufacturing sites in the U.S., affecting the auto industry supply chain across North America.
