US automotive market at a crossroads – navigating political changes and tariffs successfully

The new US administration promises a fundamental policy shift, presenting significant risks and opportunities for the automotive industry. Changes, such as the elimination of tax incentives for electric vehicles, and higher import tariffs, will profoundly impact market access, local vehicle demand, and global supply chains.

At the same time, US manufacturers with an international footprint will also suffer from tariff increases. Furthermore, a trade war between the US and China appears increasingly likely. A backward-looking energy and climate policy could increase demand for internal combustion engines but harm US innovation capabilities.

Our EFESO insight provides an overview of anticipated developments in regulatory frameworks, and their potential impacts on market access and supply chains. Additionally, learn about the steps we recommend for automakers and suppliers to create a future-proof US market strategy.