Reuters reports that a collection of auto industry groups sent a letter Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer urging the Trump administration to not place a 25-percent tariff on imported car parts.
The groups that signed the letter include the Alliance for Automotive innovation, the American Automotive Policy Council, the National Automobile Dealers Association, and the Vehicle Suppliers Association. These groups combined represent most major automakers, including GM, and many U.S.-based dealers and suppliers.
“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,” said the letter.
“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, noting “it only takes the failure of one supplier to lead to a shutdown of an automaker’s production line.”
These groups join a chorus of industry groups and analysts predicting higher prices for cars, parts, and even insurance as a result of new tariffs. For example, a recent study by the Center for Automotive Research estimates a total cost increase of $107.7 billion for the entire U.S. auto industry. That’s broken out into $43 billion in added costs for parts and $64.7 billion in new costs for assembled vehicles.
President Trump sent a shockwave through the global economy when he announced a round of aggressive reciprocal tariffs on April 2nd, which Trump called “Liberation Day.” Just a week later, the president announced a 90-day pause on reciprocal tariffs for most countries, but the pause didn’t apply to China. There’s also been no reversal of the 25-percent tariffs on automobiles imported to the U.S., but there are temporary exemptions for USMCA-compliant models.
Comments
hope the auto industry goes in a tailspin and hurt the american economy.some vehicles from mexico are to be made in the United states but canada keeps some since canadians buy 10 times more american cars than mexico, hum by the way is now buying chinese cars!
Like I said before. Go right ahead and have free trade with China and see how that plays out for Canada. Canada also has a thriving bus industry that can easily be wrecked by Chinas bus manufacturing industry which is now the leading producer of busses. Just don’t complain when Yutong and King Long put Canadian companies like Prevost, Nova Bus, and New Flyer out of business and thousands more Canadians are left unemployed. But hey. You asked for Chinese cars so f*** those fellow Canadians.
Why in the world do you believe Canada has to let Chinese busses in if they let Chinese cars in? Do you think it is written in The Great Trade Bible that a country has to allow imported busses in if they allow imported cars?
Perhaps a little research would help a more on like you. BYD has had a bus manufacturing plant in Newmarket, Ontario, Canada since 2019, and it currently employs over 1000 Canadians. And, BYD opened a bus manufacturing location in Lancaster, California in 2013, employing more than 750 Americans.
Like DJT, those who support him generally haven’t got a clue what they’re talking about.. and simply spew BS.
Much like those who support Xi and his little red book? They haven’t a clue what they are talking about and will spew BS to be on the party’s good side and not “disappear.” They haven’t a clue been full throttle propaganda these days.
Right on . That person is a B.S . Distrbuter extroydanaire. You Go Kei . Research is like a foriegn language to some people. In french they say “KISS MY DARIARE DARE”
No dat does not mean french kiss.
You keep telling us?? You get the picture then no one is paying attetion to you.
Wah Wah . I want my MOMMY no one is listening to me. Hitler said tell a big enough
lie long enough and people will believe it ? How is dat working out for you. BUDDY or should we COMRADE.
You tell me. Seems like freedom of speech is not allowed in Canada especially from truckers peacefully protesting as per tyrant Trudeau. How is that working out for you Péngyǒu?
Right blocking all roads around capital of Canada .Spend all days blaring horns preventing people from shopping .Violating every one*s Charter Rights. Guaranty to LIFE + LIBERTY. Breaking the law. Creating ANARCY. YOU SIR + your kind do not have the right to do that. Charter Of Rights + Freedoms states very clearly .Everyone has to the right to protest “””PEACEFULLY””>Get EDUMACATED. READ the CHARTER you ROCKET SCIENTIST you. You work for K>G>B ??? COMRADE??
Man you Canadians are hurtful, maybe you deserve Carney/Trudeau. Goes along with the number of depressed teams your killing with MAID instead of just prescribing basic antidepressants.
When you decide to be nice, we’ll talk again.
Dis edumacated Canadian says.WE are hurtful ?? You YANKYS live the “VIDA LOKA” old song. “HE is into Superstion BLACK Majic + VOODO ECOMONICS. I have a premination
this MAN will make us FALL.HE will make you live HIS crazy life like a BULLET IN DA BRAIN. Once you have a taste of HIM you*ll never be da same.HE can make you go in SANE.The MAN in your BRAIN.Push + pull you down Living da “VIDA LOKA” TAA DAAA
Man WTF are you even saying??? I’ve heard more coherent rants from people after downing an entire 12 pack than the nonsense you spew out of your pie hole. And I went to a school full of drunk sailors.
Saying all sailors are drunk is insulting to all sailors. And not true. You have no respect for your self or others so don*t expect to get respect or people to listen to
incoherent rants. WAh WAh Wah
Thank you commandersigma.You finally get the point that US real car people have been making for a long time.”WE ARE IMMITATING YOU” + other so called experts I have read Lee Iacoocaa*(made president of Chrysler in 3 years brought it to profit-
ability)book going for broke. W.e. Deming*s book on quality.He is the American that taught the Japanese( what everyone likes to say is the Japanese quality control system.) Mary Ann Kellar independant auto anylist on U.S. auto industy.Other books books on auto ind.This publication is for car enthusiasts to share +help each other to improve our cars.NOT TO use it for personal attacks on others.Call me STUPID. Slander ,Lose of reputation,character assisination.I could SUE the pants off you.Luck I am OLD SCHOOL TALERANT.Found out Ms. Mary Barra co authored a book on her manage ment style.I will rush out to buy it to educate myself.A.V.S(esquire) Also I*m sticking my tongue out at you.
I love my tuned 2018 Denali 6.2L with only 64k miles on it! I’m keeping it, don’t need anything new! I could careless. The auto manufactures have gotten greedy ever since Covid came and many IGNORANT people have financed themselves into car payment oblivion just to have the newest and fanciest vehicle. No thank you.
Also, in 2000 I went to collage, and got my first cellphone. I paid cash for it. If you would have told me that people would make a monthly payment on the cellphone, (not the plan) like they do cars/houses/rent. I would have told you were insane!!! Well, look at where we are in society now! All to have the newest and shiniest latest thing!!
Good luck paying for parts.
Where did you go to “collage”. Is that like a college for art students only?
Geez. I misspelled college and you freak out. And that’s all you got out of what I said?? Ya, maybe your comprehension is very low. Need to work on that and go to college yourself? Or maybe self educate yourself by going to a library and picking up a book and reading.
Typical grammar N@z1. Has no argument so goes on a tirade of how everyone ever who has had autocorrect or a fat finger misspell anything is obviously inferior. I pity you GTP, cause now you look like a looserific sucktacoulous for not even responding with logic, just hoity toity superiority complex 😂😂😂
WUNERFUL WUNERFUL. Grand Prix GTP. You are rite . He got his p.h.d at rump university of course. NOOO BOODDDY does it BETTER . Makes me feel bad for da rest.
LOL you call people ignorant yet you claim you went to “collage”.
He ONLY CALLS IGNORANT PEOPLE. HE RECOGNIZES. No friends?? also every body
knows. IT TAKES ONE TO KNOW ONE> Is he a clever MONKEY?? OOO OOOO OOO
Make sure you are not careless (“I could careless” in your comment) with your tuned 2018 McKinney. Enjoy your retirement and make sure you don’t blow a gasket defending the tariffs policy. It will be getting harder and harder.
Q no tariffs if the parts are manufactured in the United Sates – more jobs, investment for Americans
And how long will that take? What happens in the meantime?
Not long. As most parts are made in some shape or form in America. We can afford to pay 200% tarrifs on a radio or seat cushion. Everything else has a manufacturing base here. They just need to add an extra shift and voila, solved.
You must be kidding. What about the Ford engines assembled in Windsor, Ontario. Or the GM Gen 5 V8 engines and the dual clutch transmissions for C8 assembled in GM St Catharines propulsion plant?
The vast vast majority of V8’s/V6’s are made in Tonawanda NY. Not an issue. Ford Windsor make super duty engines and coyote engines, but the Ecoboost are made in Lima OH. Sounds like they could move some tooling to Lima.
The trucks and cars are to expensive to start . Hope the makers go bust!
And then what you will bicycle your way around the US?
You hope makers go bust???. I won*T cry when you loose your job . So many secondary jobs get lost you economic GENIOUS . Me would never suggest you have a real slow LEAK some place. Or that you have brown eyes because YOU may be full of it.
It astonishes me the level of blind ignorance on the tariff topic. I’m in the automotive logistics space. These tariffs on top of tariffs will shut down ALL OEM plants. This will affect the traditional Big 3 as well as all the foreign transplants. The OEMs will not absorb the tariff costs on finished vehicles. The suppliers will not absorb the tariff costs that the OEMs have been trying to demand. All of these cost will be passed on in the sticker price to the end consumer. The result will be paralyses.
You are correct Frustrated. I really think Trump wants the second Great Depression named after him and Navarro so they will be famous for hundreds of years into the future.
You are ignorant beyond belief. The purpose of Trump using Tariifs is to equal the playing field. He is sick of the United States being abused by other countries. He wants EVERYONE TO COME to the negotiating table and get free trading within the world. It’s not hard to see what he wants. You and others are just filled with TDS and can’t see past your nose. How does it feel have someone youbahrdly know live rent free in your head all day long?
Trump wants tariffs which is a tax on the consumer to pay for tax cuts for the wealthy plain and simple, simpleton.
LOL, turn off MSNBC, you are the only one watching!
TDS anyone!
I can’t believe there are grown ups who believe that and repeat it!
Well that, and for the grift potential. Donate some $millions to him, and get an exemption. Or if a foreign country, let Trump Towers put up a resort or golf course in with no taxes or regulations.
Comon be realistic. He CAN*T be a SIMPLETON. You give that person way too much credit. Some people ( not that person I*m sure) are 10 times worse than a “SIMLETON”. You GETCH FOR SURE. SAY WHAT????? that person says.?????????
“DOH”
Check da HISTORY books. FREE TRADE was supposed to do what tarriffs now are supposed to. You LOVE trump??. You OBVIOUSLY live in FANTASY ISLAND. The DREAM POLICE they live inside your HEAD. The DREAM POLICE they drive you
INSANE. ? Those preople in your BRAIN>>
Believe it some people also still believe in da “EASTER BUNNY ‘ + and “SANTA CLAUS>” Your a very good real man CARL You are on a mission from
“GOOODDD”> Bless you.
This tariff plan is really just a major grift machine. Impose/threaten tariffs. Some companies will come bend the knee to the felon king offering gifts and tribute. Then voila, those businesses get an exemption.
Well, I work along the I65 corridor. I work at a automotive glass plant, prior job was installing security screaning all over the Midwest. Places I have installed include metulsa, velaro, and dana. I’ve interviewed Jobs with magna and nucor. From all that I’ve seen stateside metal body parts, transmissions, axles, intake manifolds, wiring harnesses, transfer cases, shocks/struts, headlights, taillights, frames and body sheet. All from suppliers and non OEM materials. Most of these places do a lot of aftermarket to keep up sales. Sounds like if OEM’s wanted to, they could source everything except the IPADs their putting in the dashes locally with absolutely 0 tarrifs. Maybe you should tell your boss that. Also, maybe if they stopped buying parts from a certain country we wouldn’t have as many recalls and the OEM’s would save a ton of money.
Almost guaranteed the raw materials for the components are imported.
Plastic components? No, no oil for that coming from China. Metals? Why do you think the tarrifs exist? We have steel and aluminum here that costs only pennies more, but the bean counters have been favoring foreign steel for a few pennies. That really will benefit US steel and rubber manufacturing it’ll only costs consumers pennies, but benefit the country on a whole bigly.
The auto tariffs including parts will be lifted. This is all talk about tariffs. The auto industry which provides a few million jobs in the USA will suffer. Do the math and the politics.l Like other tariffs it will be pulled and non existent.
“Trump Tariffs On Car Parts Will Raise Prices And Decrease Sales, Says Industry Coalition”
Thanks Captain Obvious!