Dean Terence Lau, a former international trade expert at Ford Motor, spoke with CNBC on automotive industry tariffs being proposed by President Trump.
Lau said that the automotive industry is built on free trade as is adaptable to change. “The car industry can adjust to anything. Really, it can. It’s always going to make product that customers want to buy because personal mobility and transportation is a human need all around the world,” he said. “What the car industry cannot do well is pivot on a dime.”
Lau argued that a single-digit tariff can be a “nuisance,” but once they hit 10% or more, that’s when additional costs can really begin eating into the margin on products.