The arrival of Donald Trump at the White House raises many questions in the automotive world. Many are wondering what the policies and priorities of the new American president will be. One point, however, is unanimous: his administration should favor, by all means, “made in USA”. “We can expect to be in a pro-business and pro-American logic”says Guillaume Crunelle, partner and automotive specialist at Deloitte. This evokes the prospect of“a strengthening of import taxes” and“a form of protectionism towards countries that do not produce in the United States”.
“Europe is alone in facing its destiny” (Thierry Breton, former European commissioner)
For American manufacturers such as General Motors, Ford or Stellantis, “ Donald Trump's objective is clear: it is about solidifying, prioritizing and protecting production and jobs in the United States “, he continues. Alexandre Marian, associate director at AlixPartners, is considering measures and arrangements to support factories and increase workers' salaries. He takes as an example the reduction in overtime charges, often mentioned by Donald Trump. “ This would reduce the cost of labor and production, and therefore increase the competitiveness of factories. “, he specifies.
Counter any relocation
At the same time, Donald Trump indicated that he would be particularly severe regarding certain relocation projects. Five days ago, during a speech in Warren, Michigan, he threatened Stellantis with high taxes if the manufacturer decided to increase its production in Mexico. “Tell Stellantis that if they plan to move, we will charge them 100% customs duties on every car”he said. Donald Trump also indicated that he wanted to revise the free trade agreement between the United States, Mexico and Canada (USMCA).
The Trump administration should, without a doubt, continue the American offensive against China. The United States already applies 100% customs duties on electric vehicles imported from the Middle Kingdom. Donald Trump said he could toughen them up during the campaign. “It would have no effectaffirms Alexandre Marian. Current duties are already quite high, and the American market remains closed to Chinese manufacturers. »
The question of support for electric cars
European manufacturers, particularly German ones, who export a lot to the United States, could also pay the price of protectionist measures. “The most exposed is Porsche, since all their production is based in Germany”specifies Michaël Foundoukidis, analyst at Oddo BHF. This is not the case for Stellantis, which notably owns the Chrysler brand, and produces in Uncle Sam's country. Renault, for its part, is not in the United States.
With Trump in the White House, Elon Musk reaches a new orbit
Much uncertainty concerns US policy towards electric cars. Donald Trump, who considers them to be “green scam”a, repeatedly called to put an end to their promotion. The new President of the United States notably indicated that he wanted the repeal of the Inflation Reduction Act (IRA), this $400 billion plan put in place by the Biden administration for the ecological transition. This envelope aims in particular to support electric car manufacturers in the United States, while stimulating supply.
Trump should not play against Musk
“He will potentially there are real questions about the sustainability of state aid for electric vehicles”affirms Guillaume Crunelle. Alexandre Marian considers, for his part, that it would be “surprising” that Donald Trump buries the IRA. This plan appears “in its grant software”he continues, by promoting investments in the United States. On the other hand, Donald Trump benefited from support, which many consider decisive, from Elon Musk. It is hard to imagine the new president hindering the Tesla owner's desire to sell his electric cars in Uncle Sam's country.
