The 2024 United States Presidential Election is still nine months away, but the current front runners are former President Donald Trump for the Republican party nomination and President Joe Biden for the Democratic party nomination.
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If Election Day turns out to be a Biden-Trump race, and if Trump secures a win, many Americans may wonder what his impact may be on the automotive industry.
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How a Second Trump Term Could Impact New Car Costs
Lauren Fix is the sector analyst of automotive, energy and trends at Car Coach Reports. If Trump wins the 2024 election, Fix said we can guarantee the electric car mandate will be canceled.
Currently, the Inflation Reduction Act allows consumers to receive $7,500 back in tax credits on US-made electric vehicles. More than $100 billion has been invested into electric cars, according to those in the auto industry, and over 100,000 American jobs have been created because of these investments.
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In September 2023, CNN reported Trump made claims at a Detroit rally that EVs were too expensive and added “electric vehicles are gonna put [automakers] out of business.” On the social media platform Truth Social, Trump wrote that pivoting to EVs would destroy the US auto industry and jobs.
“No car brand is making money on electric cars,” said Fix. “Brands produce EVs to avoid billions of dollars in fines. Their only option is to take millions of dollars in losses.”
CNBC also reported if Trump can secure a Republican nomination for the 2024 election, he plans to impose a 10% tariff on all imported goods.
Such an increase would shake up every asset class, including the automotive industry. However, Treasury Secretary Janet Yellen said “in some cases” tariffs would be appropriate.
“The tariffs against Chinese vehicles and components will increase jobs here in North America,” said Fix, adding that car prices will be lower when CAFE (corporate average fuel economy) will maintain at 34.5 MPG.
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This article originally appeared on GOBankingRates.com: How a Trump Win in 2024 Could Impact the Cost of a New Car