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U.S. auto industry bracing for new trade and regulatory landscape

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The U.S. auto industry is bracing for a shifting landscape, marked by the economic policies and global trade strategies of a Trump White House, as it sets itself apart from the outgoing administration.
The U.S. auto industry is preparing for significant changes due to evolving trade policies and regulatory frameworks, particularly in response to the Biden administration's push towards electric vehicles (EVs) and domestic manufacturing. The Inflation Reduction Act has introduced new incentives for EVs, but these come with stringent requirements for domestic sourcing of battery components and minerals, aiming to reduce reliance on foreign supply chains, especially from China. This shift is causing automakers to reassess their supply chains and investment strategies. Additionally, the UAW strike has highlighted labor issues, with workers demanding better wages and benefits, which could influence the cost structure of EVs. The industry is also navigating potential trade disputes, as the new rules might provoke retaliatory measures from trading partners. These changes are set against a backdrop of increasing competition from both domestic and international manufacturers, all vying for a share in the growing EV market.

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