U.S. Auto Industry Sounds Alarm: Tariffs Threaten Consumers and Jobs

Influential automotive sector organizations—including representatives from manufacturers, dealerships, and parts suppliers—jointly wrote to senior members of the Trump administration on Monday. They highlighted their concerns about the severe consequences expected within the U.S. automobile industry due to impending tariffs scheduled to take effect on May 3rd. The signatories included the Alliance for Automotive Innovation, the American Automotive Policy Council, Autos Drive America, the Motor & Equipment Manufacturers Association, the National Automobile Dealers Association, and the American International Automobile Dealers Association.

"The tariffs imposed on automobile components will disrupt the worldwide automotive supply chain and trigger a cascading series of events resulting in increased car costs for buyers, reduced sales volumes at dealerships, and render vehicle maintenance and repair more costly and unpredictable," stated a portion of the letter.

Many automobile suppliers lack the capital to handle sudden disruptions caused by tariffs. Numerous companies are already struggling and will likely experience production halts, job cuts, and bankruptcies as a result.

Only one failing supplier can cause an automaker’s production line to shut down. During the pandemic, when this occurred, every supplier was affected, resulting in job losses for many workers.

We back increased domestic production and extra supply chains running through the U.S., yet it’s unrealistic to redirect global supply chains instantly—or within mere months. Such changes require considerable time.

The correspondence was addressed to Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer.

Some of the corporations affiliated with these trade organizations are General Motors ( NYSE: GM ), Ford Motor ( NYSE: F ), Stellantis ( NYSE: STLA ), Toyota ( TM ), Honda ( HMC ), O'Reilly Automotive ( ORLY ), AutoZone ( AZO ), Allison Transmission ( ALSN ), Genuine Parts ( GPC ), Aptiv ( APTV ), AutoNation ( AN ), Lithia Motors ( LAD ), Penske Automotive Group ( PAG ), Sonic Automotive ( SAH Asbury Automotive Group ( ABG ), and Goodyear Tire & Rubber Company ( GT ).

More about Ford, General Motors, and others.

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