An employee works on a Volkswagen e-Golf electric automobile on the assembly line inside a factory on May 8 in Dresden, Germany. Car manufacturers have some major decisions to make about the future of electric and automated vehicles.
The global automobile sector stands at the intersection of three major geopolitical trends: shifting trade dynamics , the transportation revolution and the rise of China as a technological competitor to the United States. In the short term, automobiles represent a key focus of the administration of U.S. President Donald Trump, which has proposed measures that would target foreign cars with tariff barriers. Steel and aluminum tariffs, combined with extensive tariffs levied against China (as well as Beijing's retaliation to the United States), have the potential to disrupt supply chains and increase component costs. As electric vehicles themselves alter automobile markets over the coming decade, partnerships will be crucial to reducing developmental costs and standardizing components.
