When President Donald Trump introduced his tariff policy earlier this year, it looked like a disaster for automakers. But even with US tariffs on imported cars and parts, it has shaped up to be a pretty good time for car companies.
Most automakers, even US-based ones, import some cars and most parts. But car companies’ dire cost estimates have decreased as tariffs keep getting rolled back, bit by bit.
More importantly for automakers’ bottom lines, the financial penalties for not meeting fuel efficiency rules have all but vanished. Those regulatory savings could eventually offset the cost of tariffs.
All in all, one could argue that auto industry profits could end up better off than they were before Trump took office in January, a surprising outcome as automakers’ huge investments in electric vehicles in recent years were also being undercut by Trump pulling the plug on the federal support of electri
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