Trump's auto tariffs will lead to autoworker pain, 2 Michigan business groups say

David Shepardson · Thomson Reuters

· Posted: Apr 01, 2025 7:40 AM EDT | Last Updated: 2 minutes ago

Two Michigan business  groups urged President Donald Trump to halt plans to enforce sweeping per cent tariffs connected imported vehicles and parts, saying it would pb to melodramatic terms hikes, supply-chain disruptions and symptom successful the auto-heavy state.

"The accrued costs would origin important disruption passim the proviso concatenation and, possibly astir importantly, pb to important terms increases to the outgo to American consumers for vehicles," the Detroit Regional Chamber and MichAuto, an automotive and mobility association, said successful a letter.

"In Michigan, wherever 1 successful 5 jobs is automotive-related, the symptom felt by working-class citizens volition beryllium profound." The car assemblage contributes astir $300 cardinal to Michigan's system annually, according to the Detroit Regional Chamber.

Trump past week followed done connected weeks of threats for new  tariffs connected imported cars, saying a 25 per cent import taxation connected vehicles not built successful the U.S. would footwear successful connected April 3 - connected apical of erstwhile duties. He could besides adhd caller duties connected autos arsenic portion of sweeping caller tariffs helium volition denote Wednesday.

The groups said that the tariffs volition harm the state's automotive manufacture and economy, noting determination are much than 1,000 automotive suppliers based successful Michigan.

"The tariff policies projected volition summation prices, thrust down user demand, and therefore, little the profitability of our companies, straight impacting the hardworking Americans who assemble the iconic vehicles," the missive added.

Higher caller conveyance prices could punctual immoderate owners to clasp connected to aged vehicles longer, raising utilized car prices. "These accrued conveyance costs volition beryllium disproportionately borne by working-class and middle-class families," the missive said.

In response, White House spokesperson Kush Desai noted automakers similar Hyundai person announced caller investments successful the United States and argued those investments and Trump's telephone for a caller taxation deduction connected involvement connected car loans "will proceed to thrust historical manufacturing and occupation growth."

A radical representing General Motors, Ford, Toyota, Stellantis and others warned the tariffs volition hike conveyance costs. Hyundai told car dealers they whitethorn request to set prices if the tariffs instrumentality effect.