Syracuse Sun

Reporters seeking insights on automotive tariffs are encouraged to consult Terence Lau, Dean of the College of Law at Syracuse University. Lau has a background in international trade law from his time at Ford Motor Company and later served as Ford’s Director for the Association of Southeast Asian Nations Government Affairs.

Lau commented on the recent one-month exemption granted by the administration on tariffs for imports from Mexico and Canada for U.S. automakers. He noted, “The United States imports completely assembled vehicles from Mexico, Japan, Canada, S. Korea, Germany, UK, Slovakia, Italy, Sweden, China, Belgium, Austria, Hungary, South Africa, Netherlands. In each of these cases, the US runs a trade deficit in vehicles.” He explained that if the goal is to bring manufacturing jobs back to the U.S., tariffs would need to be imposed broadly; otherwise companies could shift their import strategies.

He further elaborated that building new vehicle factories takes time due to capacity constraints but emphasized that automakers favor building in the U.S. because of its large market size. "USMCA led to more union jobs in the USA," he said.

Lau also addressed potential impacts of tariffs: “A 25% tariff is more than the profit margin on most mass-produced vehicles.” He warned that such tariffs could lead to higher vehicle prices rather than increased investment in U.S. auto factories and might create sudden market shifts among brands.

For interviews with Dean Lau regarding automotive tariffs and related topics, contact Ellen James Mbuqe at ejmbuqe@syr.edu.