Kathmandu. US President Donald Trump has said that his trade policy has helped increase production and investment in the US auto industry.

According to industry experts, although there has been a positive change in some areas, uncertainty in trade policy is also challenging the companies. During the last term of the Trump administration, major auto companies including General Motors, Toyota, and Ford have announced plans to expand their factories in the US and bring some of their overseas production to the US.

After the US imposed a 25 percent tariff on imported vehicles, some companies are planning to use the production capacity of factories in the country.

According to auto industry analyst Stephanie Brinley, the U.S. auto industry seems to have benefited from the import tariffs. However, due to changes in trade policy, companies are being more cautious when making long-term investment decisions.

The trade talks between the US and Canada have also created some confusion in the auto industry. Honda has said that its factories in North America are operating at high capacity. The company has also said that it is considering the possibility of building new factories in the future.

Meanwhile, the changes in import duties and government policies on electric vehicles are also said to have affected the companies that produce auto parts. In the US, there are about 9.30 lakh people working in this sector.

According to U.S. labor statistics, the auto industry employed about 1.8 million people in September 2026. Although there has been some improvement in employment, trade policy, investment environment, and market conditions will play an important role in the growth of the industry in the coming days.