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US Automotive Market at a Crossroads

3.19.2025
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Industry Insights
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Navigating Political Changes and Tariffs Successfully

The new US administration signals a major policy shift, bringing both risks and opportunities for the automotive industry. Key changes—such as the elimination of tax incentives for electric vehicles and the imposition of higher import tariffs—will reshape market access, local vehicle demand, and global supply chains.

At the same time, US manufacturers with international operations face mounting pressure from rising tariffs, while an escalating trade dispute between the US and China appears increasingly likely. A shift toward a more traditional energy and climate policy could temporarily boost demand for internal combustion engines but may also stifle innovation and hinder long-term competitiveness.

EFESO outlines the anticipated regulatory changes and their potential impact on market dynamics, supply chains, and competitive positioning. We also present a five-step approach to help automakers and suppliers build a resilient, forward-looking strategy for the US market.

Download the insight to explore the key trends, upcoming policy shifts, and actionable steps to navigate the evolving landscape.

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