Donald's Trump's Presidency And How It Could Affect The Auto Industry - Are There Positives For Sa?

Newly inaugurated US President Donald Trump has 'hit the ground running', making a slew of executive orders within hours of taking office, including a clampdown on undocumented immigrants and withdrawing from both the Paris Climate Agreement and World Health Organisation.

But the changes under his leadership promise to be far more sweeping and have the potential to affect industries around the world, including the automotive sector.

Trumps promise of higher tariffs could affect production bases around the world, while his pull-back on electric car incentives and mandates will also disrupt the current motoring landscape.

From a vehicle production perspective, US neighbours Mexico and Canada appear particularly vulnerable at present, with Trump threatening to impose 25 import tariffs on both countries from February 1.

Numerous international car manufacturers currently use Mexico as a base for exporting cars to the US, taking advantage of its lower labour rates. Some, such as Honda, export as much as 80 of their output up north. European and Asian manufacturing bases also stand to lose export business.