Biden’s Big Tariffs, Dealership Delivery Lounge, and TikTok AI

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We. Are. HERE! Tonight hundreds of industry friends will descend on lower Baltimore (upper Annapolis) to kick off ASOTU CON at the welcome reception. But first, we have a few things to chat about; Big Tariffs from Biden, an employee-only dealership experience, and TikTok is now Google.

• With the pressure mounting from Chinese EV imports, the Biden administration has quadrupled the tariff on EVs and doubled many other import products.
  • The changes are designed to reinforce domestic industries and counteract unfair Chinese trade practices, with implementation staggered from 2024 to 2026.
  • From the article: “The levies aim to counter China’s rush into so-called legacy chips, which are older-generation components that are still essential to the global economy. The Biden administration recently concluded a survey of more than 100 auto, aerospace, defense and other companies about their supply chains for those less-advanced semiconductors, and the EU is considering launching a similar review of its own.”
  • Treasury Secretary Janet Yellen stated, "We will not tolerate surges of certain artificially cheap Chinese imports on American communities," emphasizing the ongoing effort to address trade imbalances.

• One of the first Toyota retailers, family-run Toyota of Greensboro established in 1965, has long been a busy retailer in the Southeast, selling hundreds of vehicles monthly. Recently, Toyota announced a new $13.9 billion battery complex nearby, set to employ over 5,000 local people and offer them exclusive discounts on new vehicles. so Toyota of Greensboro is opening a dedicated, high-end delivery and service center, just for those employees.
  • Toyota of Greensboro is spending nearly $2 million to revamp a former used-car center into an exclusive service and delivery hub for Toyota employees.
  • The new facility will feature a 10-bay service center and amenities like a pool table, refreshments, and a high-end lounge area.
  • Mary Rice, 3rd generation dealer principal at Toyota of Greensboro said, "Everything I've had my whole life is due to Toyota... this is an opportunity to give back to the company.”

• TikTok is leaning into search results by integrating generative AI into their platform, called "AI Smart Search."
  • The platform’s approach aims to cater to younger users who increasingly rely on TikTok for search needs over traditional engines.
  • AI-generated responses now top some search results on TikTok, offering full page insights with a click.
  • This feature, limited to specific queries at this point, provides content from ChatGPT when deemed relevant.
  • TikTok has evolved its search capabilities, previously integrating Google Search and external site links.
    
    

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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