Donald Trump has just been elected as the most powerful man in the world! So what are two main implications for the US auto industry? A potential issue is implementing manufacturing plants in Mexico. Because NAFTA provides US automakers with cheap labour in Mexico, automakers manufacture smaller cars there that aren’t profitable enough to manufacture in the US. With the possible removal of NAFTA, it would be a money-losing proposition to produce small automobiles in the US. Secondly, electric cars are in trouble. EVs are more expensive than gas-powered automobiles so they need state and federal subsidies to make the price more attractive. Because EV sales are already poor, however, Trump’s proposal to take away the credits and tax break could see further dwindling of US EV sales.