Trump’s auto tariffs will lead to autoworker pain, 2 Michigan business groups say
Two Michigan business groups urged President Donald Trump to stop plans to impose large rates percent on vehicles and imported parts, affirming that it would lead to dramatic prices of prices, interruptions of the supply chain and pain in the heavy automatic state.
“The increase in costs would cause a significant disturbance throughout the supply chain and, perhaps above all, would lead to significant increases in prices for the cost for American consumers for vehicles,” said the regional chamber of Detroit and Michauto, a car association and mobility association, in a letter.
“In Michigan, where one in five jobs is linked to the automotive sector, the pain experienced by citizens of the working class will be profound.” The automotive sector contributes about $ 300 billion to the Michigan economy every year, according to Detroit’s regional chamber.
Trump last week followed weeks of threats for new rates on imported cars, saying that a 25 % import fee on vehicles not built in the United States would enter April 3, in addition to the previous functions. He could also add new duties on cars as part of the new rates that he will announce on Wednesday.
The groups have said that the rates will damage the automotive industry and the state economy, noting that there are more than 1,000 automotive suppliers based in Michigan.
“The proposed tariff policies will increase prices, reduce the demand for consumers and, therefore, will lower the profitability of our companies, affecting directly on the laborios that bring iconic vehicles together,” added the letter.
Higher prices of new vehicles could push some owners to old vehicles longer, increasing the prices of used cars. “These major vehicle costs will be incurred disproportionately by the families of the working class and the middle class,” said the letter.
In response, the spokesman for the White House Kush Desai noted that car manufacturers such as Hyundai announced new investments in the United States and has supported these investments and Trump’s request for a new tax deduction on interest on car loans “will continue to guide historical production and the growth of work”.
A group that represents General Motors, Ford, Toyota, Stellantide and others have warned that the rates will increase the costs of the vehicle. Hyundai told car dealers who may need to adjust prices if the rates have effect.
