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4d ago

U.S. Auto Groups Unite to Oppose Looming 25% Parts Tariffs

Six leading industry organizations warn of severe supply chain disruptions and economic fallout as they petition the Trump administration to rescind or delay the May 3 tariffs.

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Cars of the Volkswagen Group intended for export to the United States and the United Kingdom sit on train carriages outside the seaport of Emden near the estuary, where the River Ems flows into the North Sea, in Emden, Germany, April 2, 2025. REUTERS/Wolfgang Rattay TPX IMAGES OF THE DAY
A cruising boat travels past Porsche luxury cars, Volkswagen ID Buzz electric bus and other cars of the Volkswagen Group that will be loaded onto a cargo ship for export to the United States at the seaport of Emden near the estuary, where the River Ems flows into the North Sea, in Emden, Germany, April 2, 2025. REUTERS/Wolfgang Rattay
Stellantis Kokomo engine plant employee walks out of the Stellantis plant in Kokomo, Indiana, U.S., April 3, 2025. REUTERS/Stephanie Amador REFILE - QUALITY REPEAT

Overview

  • Six major U.S. automotive policy groups issued a rare joint letter urging the Trump administration to halt or delay 25% tariffs on imported auto parts set to take effect on May 3.
  • The coalition warns the tariffs could lead to widespread supplier bankruptcies, production stoppages, layoffs, and ripple effects across the industry.
  • The automotive sector, which supports 10 million U.S. jobs and contributes $1.2 trillion annually to the economy, says global supply chains cannot be quickly restructured to meet the new tariff requirements.
  • President Trump has indicated potential openness to providing temporary relief for some automakers, similar to earlier concessions granted for other industries like consumer electronics.
  • Analysts predict the tariffs could result in millions fewer vehicle sales, higher prices for consumers, and over $100 billion in added costs for the industry.