Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Latex
    • Coronavirus
    • Executive Action
    • Government/Legal
    • Opinion
    • Technical Notebooks
    • Women in Tire & Rubber
    • ITEC
    • International Elastomer Show
    • HEXPOL Sponsored Content
    • Goodyear's global footprint would get strategic boost with Cooper Tire deal
      Goodyear-Cooper Tire deal 'a transactional milestone'
      Cooper recalling 430,000+ whitewall LT tires in multiple brands
      Yokohama sets ambitious goals through 2023
    • Goodyear's global footprint would get strategic boost with Cooper Tire deal
      Goodyear-Cooper Tire deal 'a transactional milestone'
      9 Goodyear-Cooper Tire stories you may have missed
      Cooper recalling 430,000+ whitewall LT tires in multiple brands
    • USTMA, NAM among associations backing passage of Equality Act
      ASC seeks presenters for fall convention
      Birla Carbon again recognized for sustainability efforts
      Carlisle TyrFil out with new recycling technology
    • Zeon receives pair of ISO certifications
      Trinseo taps K.D. Feddersen to supply soft-touch elastomers
      New products: MonTech offering customized bale cutters
      Synthomer dismisses takeover reports
    • Stockwell Elastomerics' legacy moves on
      Larger mixers tout economies of scale, along with the need for speed
      Hexpol, Bloom deal with COVID, reorganization, fire since start of 2020
      Small, mid-size compounders keep value, agility, service 'in the mix'
    • Ohio firm focuses on making better masks in U.S.
      U.S. to increase NBR, make gloves using Defense Production Act
      Tire Cologne canceled; rescheduled for 2022
      Tire Technology Expo canceled for 2021
    • 9 Goodyear-Cooper Tire stories you may have missed
      Goodyear promotes Chris Helsel, expanding his global technology, operational role
      Stockwell Elastomerics' legacy moves on
      Dana Inc. hires Byron Foster in executive role
    • 9 Goodyear-Cooper Tire stories you may have missed
      Cooper recalling 430,000+ whitewall LT tires in multiple brands
      USTMA, NAM among associations backing passage of Equality Act
      Conti recalling 94,000 LT/SUV tires
    • Column: Discussions of race, equality may mean uncomfortable moments
      Column: Business trips possible because of essential workers
      Editorial: Associations see opportunity for progress under new administration
      Editorial: Against a backdrop of turmoil, M&A deals give glimpse of normalcy
    • Studying RPA ASTM methods for detecting compound quality differences
      Damage mechanism in oil and gas formulations during downhole testing
      Advancements in synchronous drive belt design for industrial and consumer markets
      Effects of multiple repurposed materials for reinforcements of standard rubber compounds
    • Rubber Division introduces WORD webinar series
      WORD panelists say evolution, authenticity keys to success
      New video celebrates women in rubber industry
      ITEC panelists say women can thrive in tire industry
    • Goodyear recognized by Lockheed Martin as 'elite supplier'
      EV tire advancements to help secure future
      Lambillotte: Only question on AVs is timing
      CAR official says EV future brighter than autonomous
    • Rubber Division introduces WORD webinar series
      Rubber Division seeks abstracts for 200th Technical Meeting
      WORD panelists say evolution, authenticity keys to success
      IEC keynote: Communication key to logistics
    • Sponsored By HEXPOL Compounding
      Faster Access to Your Polymer Compounding Experts Around the World
      Sponsored By HEXPOL Compounding
      Take a walk thru a HEXPOL Lab
      Sponsored By HEXPOL Compounding
      HEXPOL offers a unique selection of High Performance Elastomers to match your application requirements
      Sponsored By HEXPOL Compounding
      It’s what you can’t see that makes the Difference at HEXPOL
  • Blogs
    • Products
    • Wacky World of Rubber
    • New Products: Starrett expands field-of-view for multi-sensor vision system
      New Products: Nova thinks outside the box with sealing tech
      New Products: MonTech introduces 1,500 kN lab press
      New products: 3M introduces new durable, pliable medical adhesive
    • Wacky World of Rubber: How Trelleborg, teens sealed a spot in the world record book
      Wacky World of Rubber: Of chicken and feet, but not chicken feet
      Wacky World of Rubber: Time to go mattress shopping
      Wacky World of Rubber: Because nothing says football like 'frunk' shrimp
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • Goodyear's global footprint would get strategic boost with Cooper Tire deal
      Goodyear-Cooper Tire deal 'a transactional milestone'
      Cooper recalling 430,000+ whitewall LT tires in multiple brands
      Yokohama sets ambitious goals through 2023
    • Stockwell Elastomerics' legacy moves on
      Larger mixers tout economies of scale, along with the need for speed
      Hexpol, Bloom deal with COVID, reorganization, fire since start of 2020
      Small, mid-size compounders keep value, agility, service 'in the mix'
    • Sri Trang Gloves starts major capacity expansion
      Synthomer dismisses takeover reports
      Combined Goodyear-Cooper Tire company has tire tech, sustainability edge
      Helixtap launches new digital marketplace for rubber
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Sponsored Content
    • White Papers
    • Sponsored By HB Chemical
      Above and Beyond with HB Chemical
      Sponsored By HB Chemical
      The Company Behind the Inventory
      Sponsored By French Oil Mill Machinery
      Process Improvement, Cost Reduction with Custom Press Systems
      Sponsored By HB Chemical
      Above and Beyond with HB Chemical
    • Sponsored By Uncountable Inc.
      Labs of the Future: How to Choose a Laboratory Information Management System in 2021
      Sponsored By Uncountable Inc.
      Cooper Standard deploys lab informatics platform to synchronize R&D
      Sponsored By Elkem
      LSR Selectâ„¢: A solution to improve your financial impact in molding applications
      Sponsored By HEXPOL Compounding
      Peroxide Cureable Silicone Injection Molding
  • Data
  • Events
    • RPN Events
    • RPN Livestreams/Webinars
    • Industry Events
    • Past Events
    • ITEC Library
    • International Silicone Conference Library
    • 2021 Healthcare Elastomers Virtual Edition
      2021 Rubber in Automotive Virtual Edition
      2021 International Latex Conference Virtual Edition
      2022 ITEC
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Automotive
October 26, 2020 01:35 PM

Auto trade, environmental policy at stake in U.S. election

Audrey LaForest
Automotive News
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    In an unpredictable year upended by the coronavirus pandemic and the resulting recession, the presidential election should answer at least one question: Who will shape the nation's policy affecting the auto industry over the next four years?

    Incumbent Donald Trump and challenger Joe Biden, though starkly different in campaign rhetoric and approach, do converge on some key issues: Both support the changes negotiated in the U.S.-Mexico-Canada Agreement, promote efforts to strengthen American manufacturing and bring back jobs, and say they'll take a harder line on China.

    Where they may differ is on trade and the environment.

    A Biden presidency might encourage a new wave of transportation propped up by federal investments in electric vehicles, infrastructure and other forward-looking technologies. He might also remove some tariffs and work with allies to solve trade issues.

    A second-term Trump, on the other hand, would likely continue down a path that favors less-stringent regulations on fuel economy and other regulatory matters. On trade, the president would likely continue to use tariffs as a negotiating tool.

    But until the coronavirus is contained, neither Trump nor Biden will be able to steer the economy, or auto policy. "That is job one," said Kristin Dziczek, of the Center for Automotive Research in Ann Arbor, Mich. "Get COVID-19 under control."

    EMISSIONS: Lighter regulation vs. stricter fuel economy rules

    Trump's loosening in March of vehicle fuel-efficiency standards put in place under predecessor Barack Obama set the stage for a legal battle over the new rules. But an administration under Biden—Obama's vice president—would likely look to toughen U.S. standards and bring them more in line with global standards.

    Regulations on fuel economy and greenhouse gas emissions are the "most notable" differences between the two campaigns, said Jackie Glassman, a partner at law firm King & Spalding, who was NHTSA's chief counsel and acting administrator under President George W. Bush.

    Under Trump, the administration "will continue with the policies it has already announced," she said, including the revision of Obama-era auto pollution and fuel economy rules for light vehicles to make improvement targets less aggressive, and the high-stakes legal battle with California officials over the state's authority to restrict tailpipe emissions.

    U.S. Rep. Bob Latta, R-Ohio, argues the president's light-handed approach to regulation has helped the auto industry.

    "It's very difficult to survive out there if all you're trying to do is comply with the federal government instead of building your product," he said.

    Several industry experts agreed a Biden administration would probably not continue the lawsuit against California and would be more likely to adopt higher fuel-efficiency standards that would accelerate the adoption of zero-emission vehicles.

    "With a Biden administration, they're going to be a lot more comprehensive and holistic," said U.S. Rep. Haley Stevens, a Michigan Democrat who was chief of staff to the U.S. Auto Rescue Task Force, the Obama administration team led by Steven Rattner and Ronald Bloom to shepherd Chrysler then General Motors through bankruptcy restructurings in 2009.

    "Arguably, the approach of the current administration has led to states trying to take their own approach," she said. "We need, overall, a strong and aggressive energy plan that brings automotive to the table."

    ELECTRIC VEHICLES: Auto makers push ahead, but the way forward is unclear

    Tougher regulations on tailpipe emissions could speed the development and adoption of alternative-fuel vehicles, especially electric cars. But the path—and pace—to get there could vary greatly depending on who is president, industry experts say.

    "The current debate around the incentive structure, subsidies and regulatory requirements—including at the state level, such as what California is proposing—depending on the outcome could have a profound impact on the investment strategy for automakers and suppliers," said Gary Silberg, global head of automotive at KPMG.

    Global auto makers have announced more than $100 billion in investments in new electric vehicles since 2018, he noted. That investment will continue no matter who is president, according to King & Spalding's Glassman.

    It's a globally competitive area," said Glassman. "There may be ... some differences in emphasis and differences in approaches, but given the amount of capital investment that's already been put in that space, I think that will continue regardless of who wins the election."

    Biden's campaign promises include an aggressive $2 trillion infrastructure proposal that would add 500,000 EV charging stations nationwide, provide cash vouchers to consumers who trade in fossil fuel-powered vehicles for U.S.-made electric models and accelerate research on battery technology to support domestic production.

    Trump, at times, has said he is big fan of EVs. However, his administration did not expand the use of federal tax credits on EVs in 2019, despite lobbying efforts by General Motors and Tesla. The U.S. auto makers this year became the only two to no longer benefit from the incentive.

    Trump, a staunch advocate of the oil industry, also has led a deregulatory charge and "eliminated unnecessarily burdensome rules that stifled domestic energy production," the White House said in July.

    The current administration has not put out a comprehensive plan or fully concluded that the future of the industry is going to be electric and connected, according to Robbie Diamond, CEO of Securing America's Future Energy, a Washington nonpartisan group committed to reducing the country's reliance on oil.

    "Ultimately, we'll have an electric, connected vehicle," he said. "The question will be how quickly, and will the United States own that industry or hand it to someone else?"

    TRADE: How will partnerships with other nations be reshaped?

    Both men running for president want to see more manufacturing jobs in the U.S., but their approach to trade will likely be very different.

    Biden would be more open to multilateral negotiations with partners, some analysts say, while Trump would continue his go-it-alone strategy.

    "Those who produce in the U.S. for the U.S. market will fare better under both presidents," said CAR's Dziczek.

    Analysts say Biden might bring the U.S. into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a free-trade pact signed by Canada, Japan, Mexico and Vietnam and seven other countries. The nations crafted the pact after Trump withdrew the U.S. from the original plan to lessen member countries' dependence on China.

    For North America, Trump's U.S.s-Mexico-Canada Agreement — the replacement for the North American Free Trade Agreement and a major win for the administration—is supported by both candidates as well as industry stakeholders. The pact's labor provisions and tougher rules of origin, especially for autos, could be a model for future trade agreements.

    Trump's use of tariffs on trading partners, however, has been a "chaos on cost" for auto makers and suppliers, Dziczek explained.

    A self-described "tariff man," Trump has made it clear he likes to impose import duties to leverage negotiations with other countries. Michael Stumo, CEO of the bipartisan Coalition for a Prosperous America, said the tariffs protect the U.S. from foreign predation and are an incentive to build here.

    Jennifer Safavian, CEO of Autos Drive America, which represents the U.S. operations of international automakers, said "tariffs just increase cost, ultimately to the consumer, and it creates so much uncertainty for the industry."

    In his efforts to negotiate better terms in U.S.-Europe trade, Trump has frequently threatened to levy tariffs on imported vehicles and auto parts from the European Union, though any action has been delayed amid attempts to reach a deal. If Trump is re-elected, Safavian said she expects the threat of Section 232 tariffs on imported autos and auto parts based on national security concerns to remain as well as the possibility of other tariffs.

    A Biden presidency might take a close look at existing tariffs and work with allies to remove some and resolve the looming threat of tariffs on autos and auto parts. "I don't think we would have to be so worried about that under a Biden administration," she said.

    CHINA: 'A big issue for a U.S. president,' no matter the party

    Both Trump and Biden say they're committed to addressing China's trade practices, treatment of intellectual property and alleged currency manipulation, with a strong alignment across the campaigns that American manufacturing has suffered because of those matters.

    "China is a big issue for a U.S. president—no matter the party," said Dziczek.

    Trump's tenure has been marked by a two-year trade war with escalating tit-for-tat tariffs, followed by a compromise with Beijing—and a resumption of tensions over matters political and pandemic. But China is not on track to meet the additional $200 billion of U.S. product purchases over the next two years, as outlined in the phase one deal, Dziczek said.

    Biden could take an equally tough approach to China, but Michael Stumo, CEO of the bipartisan Coalition for a Prosperous America, argues his strategy of aligning with allies would be "so slow and indecisive that China will overtake us."

    If elected, "the Biden administration will have to resolve the inherent conflict of working with our allies or being tough on China because they won't be able to do both," he said.

    Letter
    to the
    Editor

    Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber & Plastics News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber & Plastics News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    web
    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Contact the Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Latex
      • Coronavirus
      • Executive Action
      • Government/Legal
      • Opinion
      • Technical Notebooks
      • Women in Tire & Rubber
      • ITEC
      • International Elastomer Show
      • HEXPOL Sponsored Content
    • Blogs
      • Products
      • Wacky World of Rubber
    • Newsletters
      • Rubber in Automotive
      • Silicone News
      • Latex News
      • Sign Up for Newsletters
    • Multimedia
      • Videos
      • Photo Galleries
    • Directory
    • Resources
      • Classifieds & Mold Mart
      • Sponsored Content
      • White Papers
    • Data
    • Events
      • RPN Events
      • RPN Livestreams/Webinars
      • Industry Events
      • Past Events
      • ITEC Library
      • International Silicone Conference Library
    • Advertise
    • DIGITAL EDITION