Auto groups lobby Trump administration against parts tariffs in rare unified message

by | Apr 22, 2025 | Business

Jamell Harris loads raw casting heads to be manufactured at the Stellantis Dundee Engine Complex on August 18, 2022 in Dundee, Michigan.Bill Pugliano | Getty ImagesDETROIT – Six of the top policy groups representing the U.S. automotive industry are uncharacteristically joining forces to lobby the Trump administration against 25% tariffs on auto parts that are set to take effect by May 3.The group – representing franchised dealers, suppliers and nearly all major automakers – say in a letter to Trump administration officials that the upcoming levies could jeopardize U.S. automotive production. The letter notes many auto suppliers are already “in distress” and wouldn’t be able to afford the additional cost increases, leading to broader industry problems.”Most auto suppliers are not capitalized for an abrupt tariff induced disruption. Many are already in distress and will face production stoppages, layoffs and bankruptcy,” the letter reads. “It only takes the failure of one supplier to lead to a shutdown of an automaker’s production line. When this happens, as it did during the pandemic, all suppliers are impacted, and workers will lose their jobs.”The letter, dated April 21, is addressed to U.S. Treasury Secretary Scott Bessent, U.S. Department of Commerce Secretary Howard Lutnick and U.S. Trade Representative Ambassador Jamieson Greer.It is signed by the heads of the Alliance for Automotive Innovation, American International Automobile Dealers Association, Autos Drive America, vehicle suppliers association MEMA, National Automobile Dealers Association, and American Automotive Policy Council.The joint letter is uncharacteristic, if not unprecedented, for the automotive industry. The organizations rarely, if ever, sign on to a single joint message.The groups say they represent the country’s No. 1 manufacturing sector that supports 10 million American jobs in all 50 states and pumps $1.2 trillion into the economy every year.Automakers not represented by the groups include electric vehicle makers Tesla Motors, Rivian Automotive and Lucid Group.” …

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