Aamna Aamna 
trump’s auto tariffs us manufacturing’s critical challenge
President Donald Trump started new vehicle import taxes for Asia-European aircraft and vehicles from April 3 alongside Mexico and Canada. Manufacturing experts doubt whether this executive order can successfully change how automakers operate their businesses.
New 25% steel and aluminum tariffs will boost the manufacturing and purchasing costs of new vehicles by thousands of dollars. The automotive industry leaders explain that transferring production between plants is not as simple as Trump describes it.
Key challenges facing the automotive industry include:
- Businesses currently use established trade networks created through North American free trade agreements.
- Establishing new manufacturing plants requires large amounts of capital.
- A producer requires long preparation time before they start running their new production facility.
- Uncertainty about the longevity of tariff policies beyond the current administration
Trump disclosed in his Oval Office event that manufacturers do not have to pay import taxes on vehicles made domestically. This executive order taxed products used in more than 50% of automobile production processes in the United States.
Top automakers Ford and General Motors strongly oppose these measures. Management teams at Ford and GM identify excessive costs and operational disruptions as major problems the industry now faces.
The automotive sector expects production water plants to need three to five years of development across various presidential terms with changing trade policy requirements.
