I desperately need an explanation of this one, and let’s try to keep it apolitical please.
So, in an unprecedented way, Trump is being a man of his word. A lot of times, Presidents make promises on the campaign trail then drop them once they get office, but he’s different. Trump has signed a rather large amount of Executive Orders that fulfill many of the campaign promises and many more are definitely along the way. Based on this, we now have no reason to expect him to drop the border tax idea.
With that, what will happen to small manufacturers? The current proposals suggest the border tax would be 45% on goods from China, 35% from Mexico, and 10% or so depending on country. For many small automakers, I can imagine this being just enough motivation to pull out of the US market.
Some manufacturers, like smart, don’t pull in enough sales to even make a 10% tax increase worthwhile. At that point, Mercedes-Benz would have 0 motivation to continue distributing cars here.
Am I right about this? Or are there elements that I’m missing?
Also, what would his promise of 75% regulation cuts do for the quality/safety of American built vehicles?