Automakers

In June 2019, then-presidential candidate Joe Biden tweeted: “Trump doesn’t get the basics. He thinks his tariffs are being paid by China. Any freshman econ student could tell you that the American people are paying his tariffs.” Fast-forward five years to May 2024, and President Biden has announced a hike in tariffs on a variety of Chinese imports, including a 100% tariff that would significantly increase the price of Chinese-made electric vehicles. For a nation committed to reducing greenhouse gas emissions, efforts by the U.S. to block low-cost EVs might seem counterproductive. At a price of around US$12,000, Chinese automaker BYD’s Seagull electric car could quickly expand EV sales if it landed at that price in the U.S., where the cheapest new electric cars cost nearly three times more. As an expert in global supply chains, however, I believe the Biden tariffs can succeed in giving the U.S. EV industry room to grow. Without the tariffs, U.S. auto sa...

Ballot counting is underway in a runoff election to decide who will lead the powerful United Auto Workers union as its president. But the historic election is already transforming the union’s leadership in ways that could bring an end to decades of declining blue-collar compensation in this key sector of the economy. This was the first direct leadership election in the UAW’s 88-year history, following a series of corruption scandals that sent two former presidents to prison. With most of the other leadership races already determined, it’s clear that the union’s leadership will be closely divided between the old guard and the challengers. This transformation of how the UAW is governed sets up what is widely expected to be a more adversarial relationship between the union and the Big Three domestic car producers. Regardless of who wins the presidency, a more combative stance with automakers is likely to result in more strikes, higher car prices and also gre...