It is quite clear, at this point, that Trump’s election victory was almost entirely due to support he received from unemployed auto workers in PA, OH, MI and WI, many of whom suffered the devastating consequences of their jobs being exported to Mexico. During the campaigning cycle, many questioned Trump’s decision to repeatedly get on stage and blast auto executives for shipping jobs out of the US but, in hindsight, clearly it worked very well.
And while most auto executives probably took some comfort from Hillary’s “lead” in the polls heading into election day, they’re now terrified that Trump will follow through on a pledge to impose a 35% tariff on imported vehicles. With capital investments already made in foreign countries and U. S. capacity shuttered, there is little that domestic auto OEMs can do in the short-term to offset such massive penalties.
This post was published at Zero Hedge on Nov 16, 2016.
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