The U.S. Auto Industry’s expansion under the Trump Administration

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Introduction

Changes in the US car industry’s environment was particularly noticeable under the Trump presidency. The industry’s course was altered by the introduction of fresh initiatives and regulations set against the background of existing problems. This article will explore the Trump era’s impact on the American car industry. By delving into policy shifts, manufacturing patterns, employment swings, and international competition, this research seeks to provide a whole picture of how government policies impacted the growth and dynamism of this vital economic area.

Discussion

Overview of the U.S Auto Industry Pre-Trump Era

The full revival of the US automotive industry, which was one of Trump’s campaign pledges, has not materialized. Nothing has changed significantly as assignment help New York a result of his economic policies. Neither the general economy nor the sectors targeted by the administration of Donald Trump’s trade policies have shown signs of exceptionally robust growth (Helveston, 2021). The situation has worsened in the car business. Industry leaders are bracing for 2019 with additional funding, partnerships, and ventures into electric cars and other emerging technologies, in contrast to the plant closure and layoffs that occurred at businesses like GM last year. Analysts at Wharton and others agree that just because sales were down in January doesn’t indicate the car industry would be unable to overcome setbacks.

Policy Changes and Initiatives Under Trump

The use of sarin by Syrian President Bashar al-Assad in an assault on people has prompted Trump to authorize a limited missile strike on Shayrat Air Base, which is under regime command (Bown, 2023). As has been the case for some time, essay writing service Los Angeles  and Russia is blocking U.S.-sponsored sanctions on the dictatorship in the United Nations Security Council.

Under Section 301 of the “Trade Act of 1974” and Section 232 of the Trade Expansion Bill of 1962, he levied tariffs on Chinese imports valued in the hundreds of billions of dollars to safeguard American employment and put an end to China’s abuses.

He oversaw a government-wide initiative to foil and penalize the Chinese Communist Party’s (CPC) theft of American inventions and IP.

Trump announced in a speech that the US would be pulling out of the Paris climate pact of 2015, another deal that Obama negotiated (Graham et al., 2021). Trump claims that the 195-nation accord, whereby assignment help USA and  the US would have willingly reduced its emissions of carbon dioxide, limits the independence of the United States, hurts American workers, and hurts the US economy.

Impact on the Domestic Production and Employment

  • The overall manufacturing sector and the ones he specifically targeted have yet to see an increase in output or employment during Donald Trump’s administration. Either a cyclical rebound has set, or positive indicators have already surfaced during Obama’s presidency. It became worse for the car sector as a whole when Trump instituted his America First strategy.
  • The United States’ industrial output growth rate of 4.2% is below average when compared to other developed nations, even after accounting for variations in the business cycle.
  • The steel and aluminium sectors were the primary targets of Trump’s rhetoric as well as tariffs in 2017, while the automobile industry was hit hard by the increased local content requirements imposed by the recently concluded NAFTA deal.
  • Furthermore, none of the three sectors have seen the increase in employment that Trump had promised. The number of people employed in the steel sector increased little, while that in the aluminium industry remained relatively unchanged, reflecting the general economic trend (Kaitwade, 2021). The upturn in the car industry’s employment rate started in 2010 and decreased under Trump’s presidency.
  • It would be wise to place greater faith in sectors of the economy where the United States has a clear competitive edge.

Figure 1: Domestic Auto Product of U.S

(Source: factcheck.org, 2020)

Foreign Trade and Global Competitiveness

Employment numbers also show the sector’s significance. 875,382 individuals were directly employed by the automobile sector as of December 2015. Among them, 10% participated in car and truck manufacturing, while 90% worked in parts for vehicles (Gantz, 2022). According to the 2014 socioeconomic census, automobile manufacturing accounted for 14.4% of employment in manufacturing and 18.3% of all manufacturing output in 2015.

Because of this, was predicted (in a scenario before Trump) that Mexico’s ability to assemble automobiles would increase by a factor of two during 2010 and 2020. However, within the same time frame, capacity in the US will also increase by 13%, reaching 14.2 million cars (Chouiref and Yaichi, 2022). So, contrary to popular belief, the Centre for Automotive Research found that the United States is not currently losing a lot of existing manufacturing to Mexico. What it is losing is the opportunity for expansion and investments from suppliers and carmakers.

Conclusion

One of Trump’s campaigns promises the complete rebirth of the US car industry has not come to fruition. Since Trump took office, his economic plans have had little impact. Neither the overall economy nor the industries that President Trump has sought to protect via trade tariffs have shown evidence of very strong growth. In a speech, Trump said that the United States would be withdrawing from the 2015 Paris climate accord, another accord that Obama negotiated. The 195-nation pact, according to Trump, inhibits American independence, harms American workers, and affects the US economy. Had the US voluntarily decreased its carbon emissions, the accord would have been much worse. In addition, Trump’s predicted rise in employment has not materialized in any of the three industries. Like the overall economic trend, the number of people employed in the steel sector rose only a little, while that in the aluminum industry stayed around the same. The employment rate in the automotive sector began to rise in 2010 and then fell under Trump’s administration.

Reference

Bown, C.P., 2023. Industrial policy for electric vehicle supply chains and the US-EU fight over the Inflation Reduction Act. Peterson Institute for International Economics Working Paper, (23-1). https://www.piie.com/sites/default/files/2023-05/wp23-1.pdf

Chouiref, R. and Yaichi, M., 2022. USA Foreign Policies during Donald Trump Administration (2017-2021 (Doctoral dissertation, University Ahmed Draya-Adrar). https://dspace.univ-adrar.edu.dz/jspui/bitstream/123456789/7234/1/USA%20Foreign%20Policies%20during%20Donald%20Trump%20Administration2017-202155.pdf

Gantz, D.A., 2022. Will the North American Auto Industry Survive Biden and AMLO’s Policies?. Sw. J. Int’l L., 28, p.465. https://www.swlaw.edu/sites/default/files/2023-05/12%20-%20Gantz.pdf

Graham, J.D., Belton, K.B. and Xia, S., 2021. How China beat the US in electric vehicle manufacturing. Issues in Science and Technology, 37(2), pp.72-79. https://policyinstitute.iu.edu/doc/mpi/ist-graham-belton-xia.pdf

Helveston, J.P., 2021. Why the US trails the world in electric vehicles. Issues in Science and Technology, 37(2), pp.76-79. https://issues.org/wp-content/uploads/2021/02/76%E2%80%9379-Helveston-Why-the-US-Trails-the-Wold-in-EVs-Winter-2021.pdf

Kaitwade, N., 2021. COVID-19 shatters global automotive industry; sales of metal powder take a nosedive amid wavering demand. Metal Powder Report, 76(3), pp.137-139. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7298465/

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