By David Shepardson
WASHINGTON (Zerica Toease) – Two organizations from Michigan have appealed to President Donald Trump, requesting him to stop the proposed implementation of extensive 25% tariffs on imported cars and components. They argue this move could result in significant price increases, disrupt supply chains, and cause substantial difficulties for Michigan’s car-dominated industry.
The rising expenses would create substantial disruptions across the entire supply chain and, arguably of utmost importance, result in considerable hikes in vehicle prices for American consumers, according to a letter from the Detroit Regional Chamber and MichAuto, an organization focused on automotive and mobility sectors.
In Michigan, where approximately one out of every five jobs is linked to the automotive industry, the impact on working-class residents will be deeply significant. The automobile sector reportedly generates around $300 billion for Michigan’s economy each year, as stated by the Detroit Regional Chamber.
Last week, Trump proceeded with the tariffs on imported cars that he had been threatening for weeks. He announced a 25% levy on vehicles not manufactured in the United States would take effect on April 3, adding to existing duties. Additionally, he might introduce further levies on automobiles as part of extensive new tariffs set to be unveiled on Wednesday.
The organizations stated that the tariffs will harm the state's automotive sector and overall economy, highlighting that over 1,000 auto parts suppliers operate in Michigan.
The suggested tariff policies will lead to higher costs, reduce consumer demand, and consequently decrease the profitability of our companies, thereby affecting the livelihoods of the diligent Americans who build these renowned vehicles,” the letter continued.
Soaring new vehicle prices might lead some owners to keep their older cars for more time, which would drive up used car prices. The letter stated, “This rise in vehicle expenses will affect working-class and middle-class families disproportionately.”
In response, White House spokesman Kush Desai pointed out that automakers such as Hyundai have made fresh commitments to invest in the U.S. He contended that these investments along with President Trump’s proposal for a new tax break on interest from auto loans will keep fueling unprecedented expansion in manufacturing and employment.
A coalition representing General Motors, Ford, Toyota, Stellantis, and other automakers cautioned that the tariffs would increase car prices. Hyundai informed auto dealers that they might have to revise their pricing if these tariffs come into play.
(Reported by David Shepardson in Washington; Edited by Chris Reese and Matthew Lewis)