President Donald Trump’s tariffs on auto parts are set to become reality next month, but representatives of some of the country’s biggest industry trade groups are asking Trump not to do it.
Groups representing car makers, dealers and auto suppliers delivered a joint letter to the Trump administration seeking relief from the tariffs.
“Tariffs on auto parts will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive and less predictable,” the letter said, according to multiple media outlets.
Six lobbying groups signed the letter, presenting a unified front against 25% import taxes set for May 3 on more than 100 categories of auto parts ranging from engines to steering wheels to hinges and more.
The letter warned of potential supply chain failures and job losses that would trigger disruptions – similar to the Covid-era interruptions that choked the industry — to the U.S. auto industry and states like Michigan that rely on it as an economic driver, The Detroit News and others reported.
“Most auto suppliers are not capitalized for an abrupt tariff induced disruption. Many are already in distress and will face production stoppages, layoffs and bankruptcy,” the letter added. “It only takes the failure of one supplier to lead to a shutdown of an automaker’s production line. When this happens, as it did during the pandemic, all suppliers are impacted, and workers will lose their jobs.”
According to The News, the six signatories of the letter include the heads of:
- The Alliance for Automotive Innovation, which represents every major automaker in the United States except Tesla Inc.
- American Automotive Policy Council, which specifically represents the interests of Detroit Three automakers Ford Motor Co., General Motors Co. and Stellantis NV
- Autos Drive America, which represents the interests of foreign brands with U.S. operations like Toyota Motor Co., Honda Motor Co. and others
- Motor & Equipment Manufacturers Association, the leading auto supplier lobbying group
- National Automobile Dealers Association
- American International Automobile Dealers Association
The groups sent their message to Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer.
Automakers and trade groups have repeatedly warned about the severe impacts tariffs will have on their business. Alliance for Automotive Innovation President and CEO John Bozzella made such a warning on March 28, two days after Trump first announced new auto tariffs.
“Additional tariffs will increase costs on American consumers, lower the total number of vehicles sold inside the U.S. and reduce U.S. auto exports — all before any new manufacturing or jobs are created in this country,” he wrote.
The Center for Automotive Research in Ann Arbor has estimated the cost of tariffs on automakers could hit nearly $108 billion in costs from tariffs for all U.S. automakers and figures they would impact some 17.7 million affected vehicles across the industry.
“We support more manufacturing and additional supply chains that run through the United States,” the letter said, “but it is not possible to reroute global supply chains overnight or even in months. This will take time.”
