Tariffs are nothing new to the automotive landscape, especially in America, where things like the Chicken Tax have greatly influenced our automotive landscape to drive the local manufacturing of trucks and vans. In a similar vein, incentives, like the EV incentives from the Inflation Reduction Act (IRA), have had a significant impact on US production, driving investment announcements as automakers tried to cement their footing in the world’s second-largest automotive economy. Think of these two tactics as the stick and the carrot when it comes to driving automotive investment, both of which have been used successfully and unsuccessfully to varying degrees over the last 100 or so years.
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