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US Election: What Trump’s Victory Portends for the Auto Industry

If U.S. President Donald Trump secures a second term in the White House, look for an auto emissions battle with California, reports Reuters.

A Trump re-election would leave U.S. automakers caught in the crossfire of a war over climate policy between Washington and the state of California.

California sued Trump for rolling back national vehicle emissions standards and seeking to cancel the state’s authority to mandate sales of electric vehicles.

Automakers stand to save billions in compliance costs under Trump’s emissions approach. But the clash with California over emissions and electric vehicles has divided automakers. It has also left the industry to deal with two sets of regulations for the increasingly divergent coastal Blue state markets and heartland, Red state markets. Automakers have long advocated resolving differences between California and federal climate policy to create a single, national set of standards to guide their technology investments.

During his first term, Trump put pressure on Detroit automakers to step up investments in the United States, attacking General Motors Co and Ford Motor Co for decisions to close plants, or invest in China and Mexico. Trump periodically threatened German automakers with tariffs. His steel and aluminum tariffs raised costs for U.S. automakers.

Retail/Trade

Also U.S. President Trump has imposed $370 billion in tariffs on goods imported from China, part of his “America First” agenda. Those tariffs on products ranging from handbags to small electronics are estimated to have cost U.S. importers some $61.6 billion through early September, according to U.S. Customs and Border Protection, and have been blamed for eroding U.S. manufacturing competitiveness. Retailers argue the tariffs will result in higher prices for consumers and lost jobs.

“If Trump wins, he will see the election as a validation of his strategy on trade policy, including his use of tariffs, and will certainly continue to follow this strategy with China,” said Jonathan Gold, National Retail Federation Vice President for Supply Chain and Customs Policy.

The trade organization hopes any new deal can be reached without the threat of tariffs.

The trade organization hopes any new deal can be reached without the threat of tariffs.(Reuters)

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