The auto sector has been under pressure ever since U.S. President-elect Donald Trump took to Twitter to criticize the manufacturing of vehicles outside of America. General Motors and Toyota have both been targets of this, but one analyst told CNBC that Trump's trade policy is flawed and his trade chiefs were "barking" up the wrong tree.
Barings Head of Multi-Asset Marino Valensise told CNBC Friday that there are three things that the new administration is going to do. The first two include cutting corporation tax and more infrastructure project.
"The third is trade and personally I am very worried about that because the troika that has been put in place – Peter Navarro, Trump's pick as Trade advisor, Wilbur Ross, the Secretary of Commerce designate, and Robert Lighthizer, the United States Trade representative designate – the people who are going to influence trade policies in the States have got very peculiar ideas."
Velensise further explained that the new administration is "barking at the wrong tree" because even China has been losing manufacturing jobs.
"They have lost about 5 million manufacturing jobs in the past five years. The world is moving forward. Less manufacturing and more services," Valensise said.