On Monday, January 20, Donald Trump was sworn in for his second presidential term. His second inaugural address provided insights and confirmations into what Americans and the auto industry can expect from his presidency.
“The golden age of America begins right now,” Trump said in his opening statement. “From this day forward, our country will flourish and be respected again all over the world.”
It seems that Trump will make good on his promises as he reaffirmed that he will immediately get to work by signing “a series of historic executive orders” to “restore” America.
Among the many policy overhauls that he will enact within the next 24 hours, one of his first is to declare a state of national energy emergency. He will implement his energy package, an agenda that puts fossil fuels back at the center.
“America will be a manufacturing nation again,” he said. “We have something that no other manufacturing nation will ever have–the largest amount of oil and gas of any country on earth. And we are going to use it.”
Part of Trump’s energy agenda includes lifting restrictions on liquefied natural gas (LNG) exports, expediting drilling permits on federal lands, expanding offshore drilling, and refilling the Strategic Petroleum Reserve, which has depleted.
However, one of the most notable facets of this agenda is the rollback of climate-focused policies from the Biden administration. During his speech, Trump confirmed that he would abolish the Green New Deal and electric vehicle (EV) mandates.
“We will build automobiles in America again at a rate that no one could have dreamt possible just a few years ago,” Trump said.
While Trump pledges to support the American automotive industry, his policies, particularly the looming threat of 25% tariffs on Canada and Mexico, have left the industry with a mix of hope and concern.
While Trump didn’t mention specific tariff plans during his inaugural address, he confirmed that he would begin an overhaul of the trade system. His administration will establish the External Revenue Service. This new agency will collect tariffs, duties, and other revenue from foreign sources.
The potential imposition of tariffs could also pose a significant risk to the USMCA trade deal between the U.S., Mexico, and Canada–a critical agreement allowing products to flow between the three countries without tariffs.
As Donald Trump begins his second term, his administration’s ambitious policies set the stage for significant changes in energy, manufacturing, and the automotive sector. While his promises to revitalize American industries and reduce foreign reliance have generated both hope and apprehension, a lot remains uncertain.
