AsianFin -- In a rare show of unity, six leading policy groups representing the U.S. automotive sector are banding together to urge the Trump administration to halt plans for 25% tariffs on imported auto parts set to take effect by May 3.
The coalition—which includes representatives of franchised dealers, parts suppliers, and nearly all major automakers—sent a joint letter warning that the proposed tariffs could severely disrupt U.S. auto production. The groups cautioned that many suppliers are already under financial strain and may not survive the additional cost burden.
“Most auto suppliers are not capitalized for an abrupt tariff-induced disruption,” the letter states. “Many are already in distress and will face production stoppages, layoffs, and bankruptcy. It only takes one supplier failure to shut down an automaker’s entire production line. When this happens, as we saw during the pandemic, the effects ripple across the supply chain and lead to widespread job losses.”