You need both the carrot (Biden era IRA/Green New Deal policies) and the stick (Trump Tariffs) to force a reorienting.
If these kinds of auto tariffs didn't occur, then there would have been greater parts co-mingling to maximize the benefit of the IRA tax credits - great for companies, but a slap in the face for IRA policies to bring domestic manufacturing back.
That said, we need to level set and recognize that most manufacturing that hasn't yet returned (or isn't already in the process of returning) to the US will not return to the US.
The tariffs are basically a de facto economic blockade against China and China-adjacent transshipment countries (Vietnam, Thailand), as China now has an overall tariff rate of 65% and Vietnam and Thailand are in the 45-50% range now, while other Asian economies like Japan, South Korea, Taiwan, and India remain at the 20-30% range, with significant exceptions to their top exports (Pharma, Semiconductors, Services of any kind, Auto Parts under an entirely separate tariff scheme)
That's why, despite all this, most other countries (except China) have been fairly muted in their response to the tariffs, because even with tariffs they are now cost competitive to Chinese manufacturing.
You need both the carrot (Biden era IRA/Green New Deal policies) and the stick (Trump Tariffs) to force a reorienting.
If these kinds of auto tariffs didn't occur, then there would have been greater parts co-mingling to maximize the benefit of the IRA tax credits - great for companies, but a slap in the face for IRA policies to bring domestic manufacturing back.
That said, we need to level set and recognize that most manufacturing that hasn't yet returned (or isn't already in the process of returning) to the US will not return to the US.
The tariffs are basically a de facto economic blockade against China and China-adjacent transshipment countries (Vietnam, Thailand), as China now has an overall tariff rate of 65% and Vietnam and Thailand are in the 45-50% range now, while other Asian economies like Japan, South Korea, Taiwan, and India remain at the 20-30% range, with significant exceptions to their top exports (Pharma, Semiconductors, Services of any kind, Auto Parts under an entirely separate tariff scheme)
That's why, despite all this, most other countries (except China) have been fairly muted in their response to the tariffs, because even with tariffs they are now cost competitive to Chinese manufacturing.