Trump Tariffs Could Change US Auto Industry

2016 Buick Envision (Credit: © Buick)

One of the many things President-elect Donald Trump has talked about doing is imposing steep tariffs on goods made in China. It will likely cause some pretty big changes in the US auto industry.

First off, cars made in China would either become more expensive, or production would be moved to the US. This includes the Volvo S60 Inscription (which hardly anyone buys anyway) and the Buick Envision. While it’s possible production for those two cars could move to the United States, there’s a flip side that’s not so rosy.

American automakers have been making big headway in the Chinese market. And the Chinese government is promising in-kind measures for whatever Trump has in store. That could mean Volkswagen, Mercedes-Benz and other foreign automakers would have an advantage in the largest car market worldwide. The financial losses that could be suffered by GM, Ford, Tesla, etc. might be steep.

For now, this is all hypothetical. We don’t know if such a trade war will be touched off. But, according to multiple reports, Apple is looking to move iPhone production to a domestic facility, for the same reasons. Would any Chinese sanctions affect cars made by American companies in China? For now, nobody really knows how this will play out.