Skip to Content

Avoid knee-jerk reactions to tax and tariff changes

September 11, 2018 Article 2 min read
Daron Gifford
The news around economic trade policy might leave some automotive executives feeling like they need to act. Ignore that impulse and focus instead on long-term strategies. Read more in Automotive News.

A picture of a road early in the morning

Overseas and domestic automotive companies should think long and hard about buying or building plants to take advantage of recent tax cuts, tariff threats or the depressed euro.

Because we've been here before.

About three years ago, the euro slid to almost parity with the U.S. dollar, only to bounce back and hurt European exporters. As for tax rates, they have swung up and down over the years, as have trade tariffs, stinging those businesses that try to take economic advantage of these short-term moves.

Related Thinking

Business professionals discussing international tax updates for Q1 2023.
March 16, 2023

International updates: Tax news and other global updates for Q1 2023

Article 13 min read
Vehicles being assembled in a factory.
March 7, 2023

The USMCA race has started: Is your strategy in place?

Article 6 min read
Two business professionals sitting in chairs having a discussion.
February 3, 2023

China-Taiwan tensions: What are the risks?

Article 7 min read