The largest domestic automotive groups say higher tariffs on auto parts will cost U.S. carmakers billions of dollars while scrambling the global supply chain, hiking consumer prices and lowering sales.
In a signed letter to the Trump administration, leaders from the Alliance for Automotive Innovation, the American Automotive Policy Council, the American International Automobile Dealers Association, Autos Drive America, the Motor and Equipment Manufacturers Association and the National Automobile Dealers Association said tariffs on auto parts slated to begin May 3 will be detrimental to an industry that supports 10 million U.S. jobs and has a $1.2 trillion annual impact on the nation’s economy.
Automotive leaders also expressed that while the United States-Mexico-Canada Agreement has benefited the industry by supporting U.S. jobs and preserving vehicle affordability, additional tariffs would create disruption, especially to global supply chains that are critical to domestic production.
