Auto industry groups unite to oppose 25% tariffs on parts, fearing job loss and production disruptions.

From CNBC: 2025-04-22 16:00:00

Six of the top policy groups representing the U.S. automotive industry are joining forces to lobby against 25% tariffs on auto parts set to take effect by May 3. The group, representing dealers, suppliers, and automakers, fears production disruptions and job losses due to the additional cost increases.

The joint letter, dated April 21, is addressed to top U.S. officials and signed by leading industry organizations. The groups argue that the tariffs could lead to supplier failures, production stoppages, layoffs, and bankruptcies, impacting workers and the broader automotive industry.

President Trump has expressed openness to reconsider the tariffs on automotive parts, following recent tariff relief for other industries. The letter comes after Trump suggested he may assist auto companies transitioning production to the U.S. from other countries, acknowledging the need for more time.

Auto executives warn that Trump’s tariffs could have dire consequences for suppliers, leading to a ripple effect through the global supply chain. Research reports suggest the industry could face increased costs exceeding $100 billion, with millions of units in vehicle sales expected to drop, and higher prices for new and used vehicles.

The groups emphasize the importance of supporting U.S. manufacturing and supply chains but stress that rerouting global supply chains will take time. The automotive sector supports 10 million American jobs and contributes $1.2 trillion to the economy annually, making the potential impact of the tariffs significant.



Read more at CNBC: Auto groups lobby against parts duties