On the one hand, Trump has cut the auto manufacturers’ regulatory costs, created new tax incentives for new car purchases, and negotiated slightly more access for sales in Japan and South Korea. On the other hand, he has increased their costs with tariffs, wreaked havoc with their supply chains, and destroyed the value of billions of dollars of investments in electric car production. Is Trump a blessing or a curse to the carmakers?
In the long run, Trump clearly wants them to build gas-powered cars. Since the rest of the world is going electric, complying with his vision will make the American companies uncompetitive everywhere but here. My guess is that they will respond by hedging their bets. Since they are already behind with electric cars, this will be the worst of all worlds.