The impact of tariffs policy on the US automobile industry’s performance

Abstract

This paper measures the relationship between tariffs rate and the U.S. automobile industry. The hypothesis is that imposing a higher tariff rate will have some negative impact on the U.S. automobile industry. This study uses linear regression to indicate the relationship between tariffs rate and automobile sales. In order to have a better understanding of how tariffs rate influences the automobile companies, several typical companies were selected to do further research. ROE, ROA ratio and Daily Stock Return is used to justify those specific firm’s performance. The previous study found the change of tariffs rate has some impact on U.S. imports and decreased sales of China-made U.S. brands. This study hopes that more unintended consequences can be discovered.