In March, Subaru gets ready for another busy summer export season. Newly minted ICE cars waiting to board ships in Yokohama, south of Tokyo. That timing couldn’t be more perfect, coming just days before President Donald Trump’s widely reported visit to Michigan — the epicenter of the U.S. auto manufacturing industry. This trip comes just a few days shy of making his 100th day in office. It highlights how closely linked his administration’s policies have been to the automotive industry.
With the world quickly moving toward a very different automotive landscape, President Trump is no doubt feeling the heat on his recent tariff moves. A new wave of 25% import tariffs on automotive parts is scheduled to go into effect soon, leaving manufacturers on edge. In response, Trump has announced a plan to provide carmakers with credits for up to 15% of the value of vehicles assembled domestically. This investment seeks to mitigate the harmful effects of forthcoming tariffs while encouraging domestic production.
He’s running out of time for the public to feel good about Trump’s economic leadership. Americans are beginning to show greater skepticism about the success of his dangerous economic policies. According to a recent analysis from Moody’s Investors Service, the tariffs don’t just hurt future growth, but will cause higher inflation and unemployment rates. Economic uncertainties weigh heavily as Trump prepares to deliver his address. He will be speaking to stakeholders in Michigan, a state that has traditionally relied on the automotive sector.
The stakes are immense as Trump continues to add complexity onto these major controversies. The automotive industry continues to pull the U.S. economy in a positive direction. Decisions made over the next few days are likely to dictate its trajectory for years to come. With Subaru’s vehicles ready for export and tariffs looming, the outcome of Trump’s visit may significantly influence both domestic manufacturers and international trade relations.