Automakers mentioned earlier on Monday they have been anticipating Trump to challenge reduction from the auto tariffs forward of his journey to Michigan, which is house to the Detroit Three automakers and greater than 1,000 main auto suppliers.
Final week, a coalition of US auto trade teams urged Trump to not impose 25 per cent tariffs on imported auto components, warning they’d minimize automobile gross sales and lift costs.
Trump had mentioned earlier he deliberate to impose tariffs of 25 per cent on auto components no later than Could 3.
“Tariffs on auto components will scramble the worldwide automotive provide chain and set off a domino impact that can result in greater auto costs for customers, decrease gross sales at dealerships and can make servicing and repairing automobiles each dearer and fewer predictable,” the trade teams mentioned within the letter.
The letter from the teams representing Normal Motors, Toyota Motor, Volkswagen, Hyundai and others, was despatched to US Commerce Consultant Jamieson Greer, Treasury Secretary Scott Bessent and Commerce’s Lutnick.
“Most auto suppliers will not be capitalised for an abrupt tariff-induced disruption. Many are already in misery and can face manufacturing stoppages, layoffs and chapter,” the letter added, noting “it solely takes the failure of 1 provider to result in a shutdown of an automaker’s manufacturing line”.
