The US automotive industry has come together to lobby against a planned 25% tariff on auto parts, citing concerns that it could jeopardize production and lead to job losses. Six major policy groups, including franchised dealers, suppliers, and automakers, have signed a joint letter addressed to President Trump’s administration.
The groups argue that the tariffs would disproportionately affect auto suppliers who are already struggling financially, leading to production stoppages, layoffs, and bankruptcy. A single supplier failure can cause an entire manufacturer’s production line to shut down, impacting all suppliers and workers downstream.
The industry representatives emphasize that they represent the country’s No. 1 manufacturing sector, supporting 10 million American jobs and pumping $1.2 trillion into the economy each year. The groups are urging President Trump to reconsider the tariffs, citing the potential for similar relief granted to consumer electronics and semiconductors.
President Trump recently hinted at providing assistance to some auto companies struggling to adapt to new production schedules, but industry experts warn that the tariffs will have a ripple effect on the global supply chain. Auto executives expect a drop in vehicle sales, higher prices, and increased costs of over $100 billion across the industry. The groups stress that changing the global supply chain overnight is not feasible and will take time.
The joint letter, signed by the heads of several major automotive organizations, marks an unusual display of unity among the industry’s top policy groups.
Source: https://www.cnbc.com/2025/04/22/auto-groups-lobby-trump-administration-against-parts-tariffs.html