The Trump administration’s proposed auto tariffs could have far-reaching consequences for American autoworkers, with many experts warning that the industry is on the brink of a major crisis. While President Trump claims the tariffs will create thousands of new jobs and shift production back to US factories, many autoworkers are skeptical about the promised benefits.
The auto supply chain is complex and global, with many Canadian and Mexican assembly plants constructing models not made in America. Even if only these plants shut down due to lost access to the US market, it will affect US suppliers sending parts to those plants, leading to job losses across the industry. Some US-built cars are destined for Canada and Mexico, making it difficult to predict how production will be affected.
The industry is staying mum about future plans, with automakers and suppliers declining to comment on production and employment plans. However, experts warn that tariffs could lead to a 10-20% decrease in car production across North America, with some estimates suggesting a 30% drop if the tariffs extend to Canadian and Mexican auto parts.
The impact will be felt far beyond the automotive industry, with many US jobs at risk due to lost production. The tariff move is set to upend an industry that has functioned as a single market for decades, moving freely across borders to assemble vehicles. As one retired GM worker noted, “His tariffs are going to raise the prices of vehicles, slowing down the consumers purchasing of new vehicles, which will subsequently result in layoffs and less production time, affecting auto workers’ paychecks.”
Source: https://edition.cnn.com/2025/03/31/business/american-auto-jobs-at-risk/index.html