Six major organizations representing the U.S. auto industry have united to lobby against impending tariffs on auto parts. Recently, President Trump announced a 25% tariff on imported cars, effective April 3, with plans to extend this to auto parts starting May 3. These groups, representing dealers, suppliers, and major automakers, have expressed concerns that these tariffs could jeopardize U.S. auto production.
The organizations, including the Auto Innovators Alliance and the American International Automobile Dealers Association, sent a letter to key government officials warning that many suppliers are already struggling and cannot handle additional costs. They fear that even one supplier's failure could halt production lines, leading to widespread job losses.
While the letter is unusual, it highlights the industry's significance, providing 10 million jobs and contributing $1.2 trillion annually to the economy. Notably, companies like Tesla, Rivian, and Lucid are not part of these groups. The letter also mentions that President Trump is considering exemptions for auto parts, similar to recent tariff waivers for consumer electronics and semiconductors, which would be a positive development for the industry.
Experts warn that the tariffs could have a more significant impact on suppliers than automakers, potentially triggering a ripple effect throughout the global supply chain. Analysts predict a decrease in U.S. auto sales by millions of vehicles, with increased costs exceeding $100 billion across the industry.
