In a rare, unified message, auto groups warn Trump about tariffs.
CNBC reports Auto groups lobby Trump administration against parts tariffs
- 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 May 3.
- The group – representing franchised dealers, suppliers and nearly all major automakers – say the upcoming levies could jeopardize U.S. automotive production.
- The letter 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.
Yahoo!News reports Auto industry tells Trump that tariffs on car parts will mean ‘layoffs and bankruptcy’
“Tariffs on auto parts will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive and less predictable,” said the letter.
“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 added, noting “it only takes the failure of one supplier to lead to a shutdown of an automaker’s production line.“
An analysis by the Center for Automotive Research published earlier this month found Trump’s 25% tariffs on automotive imports, implemented on April 3, will escalate costs for U.S. automakers by about $108 billion in 2025.
Trump vs Auto Industry
On March 26, 2025 I noted News Flash: Trump Says “Car Companies Will Be Thrilled With Tariffs”
The word of the hour is “thrilled” by 25 percent tariffs on autos starting April 2.
Trump batted away concerns over higher prices for cars or effects on U.S. automakers, saying that car companies with factories in the U.S. would be “thrilled” with the tariffs.
Consumers Will Be Thrilled Too
Trump largely won the election on the economy, especially inflation.
One of the reasons Trump one is his promise of lower higher inflation. So consumers will likely be as thrilled as Ford, GM, Cox, Trump, and me when prices rise by $6,000.
Is paying $6,000 more per car combined with potential massive hemorrhaging on supply chains thrilling or what?
But oh, don’t worry about that either because Trump says tariffs won’t increase prices.
More Thrills Coming May 2
On May 2, “de minimis” exemption on shipments of goods worth less than $800 are set to expire on May 2.
CNN Reports Shein and Temu just started raising prices ahead of new tariffs
“Cheap goods” sold on Temu and Shein aren’t as cheap as they were 24 hours ago.
On Friday, the two companies raised prices on many goods in advance of new tariffs set to take effect next week. The companies had informed shoppers of the coming price hikes last week.
American customers of Temu and Shein, which source most of their products from China, have largely been able to avoid paying tariffs due to an exemption on shipments of goods worth less than $800. That exemption, known as “de minimis,” is expiring on May 2, the result of an executive order President Donald Trump signed earlier this month.
Businesses will either have to pay a 120% tariff or a flat $100 fee per postal item. Come June 1, the flat fee will increase to $200.
Both sites encouraged customers to make purchases prior to April 25 to avoid paying higher prices. However, it’s unclear if buyers will avoid paying the 120% tariffs if their orders arrive after May 2.
Who won’t be thrilled with that?
On April 23, CNBC reported Trump considering exemption for automakers on some tariffs, White House says
President Donald Trump is considering exemptions for automakers from some tariffs announced by his administration, the White House confirmed Wednesday to CNBC’s Eamon Javers.
The confirmation follows a Financial Times report that Trump is planning to exempt auto parts from tariffs on imports from China that Trump imposed to counter fentanyl production as well as levies on steel and aluminum.
The exemption would be separate from 25% tariffs on imported vehicles as well as 25% tariffs on imported auto parts that is scheduled to take effect by May 3, the FT reported.
Shares of many automakers and suppliers were marginally higher Wednesday in after-hours trading.
Separately on Wednesday, Trump reportedly said a 25% tariff imposed on cars imported from Canada to the U.S. could go up.
“When I put tariffs on Canada — they’re paying 25% — but that could go up, in terms of cars,” Trump told reporters in the Oval Office. “All we’re doing is we’re saying, ‘We don’t want your cars, in all due respect. We want, really, to make our own cars.’”
So it appears Trump may grant relief on parts from China but not Canada.
Progress on Deals
Please note Trump Tells Time Magazine He Has Made 200 Deals Already, Refused to Name Any
200 deals would mean deals with every country, territory, and regional association in the world.
Check out this incredible interview with Time. I provide the key quotes.
This post originated on MishTalk.Com
Thanks for Tuning In!
Mish
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