Trump’s stunning victory over democratic candidate Hillary Clinton could lead to many shifts in business, including our own car audio industry.
We spoke to the leaders of several car audio companies today, some of whom were elated at a President Trump and others who were disappointed and wary.
You may remember that Trump has stated he would put a 45 percent tariff on Chinese imports on his first day in office, if China doesn’t amend its trade policies.
One car stereo company said he had already received word from a Chinese supplier that it was offering a more favorable contract, given Trump’s tough stance on trade.
By one estimate 80 percent of car audio parts are sourced in Asia.
A 45 percent tariff could translate to a hefty increase in the cost of car audio products to the consumer. But if China cooperates and allows the sale of more US goods in China, then the tariff could be avoided, under Trump’s plan.
Glenn McCarthy of CE Global Pro (who was recently Business Development Manager at Cadence) said, “I think what people misunderstand is they think because he’s elected, he’s just going to raise the price of products coming in. He’s going to negotiate that the products going out need to be on the same level as the products going in.” He added, “The Chinese aren’t stupid, they are not going to want to lose the gravy train of goods coming in to the US, so they will lower the tariffs for our products in their country.”
On the other hand, Trump’s presidency causes uncertainty on the development of future products such as aftermarket vehicle to vehicle (V2V) communications.
Jeff Varick, President of Brandmotion said, “I’m very interested in his position on V2V and all the investment the Obama administration has been making. There’s a lot of money going into the future transportation bill….so there’s a concern now.”
Gary Shapiro, CEO of the Consumer Technology Association said:
We congratulate President-elect Trump and are optimistic that major policies supporting innovation, infrastructure and the economy can go forward. Technology and innovation are major drivers of the U.S. economy and provide hope for the future by creating jobs, leading our nation’s competitiveness and providing solutions to global challenges.
“As President-elect Trump begins work on his economic agenda, we encourage his administration to embrace the Technology Sector Presidential Platform put forward by the technology community. This agenda will help the president-elect pursue our shared goals of stimulating job creation, economic growth and innovation in the U.S.
“Additionally, the continued Republican majority in the Senate presents an opportunity for Congress to rollback unnecessary rules, tackle high-skilled immigration reform, reduce patent troll extortion, lower corporate taxes and reduce spending.
“We congratulate President-elect Trump and the newly-elected Congress and look forward to working closely with his administration to ensure the United States remains the world’s leader in innovation and entrepreneurship.'