Gemel Harris loaded the raw casting head on August 18, 2022 to be manufactured at the Stalentis Dundi Engine Complex in Dundi, Michigan.
Bill Pugliano | Getty images
Detroit – Six of the top policy groups representing the American motor vehicle industry are inadvertently involved to advocate the Trump administration. 25% tariff on auto parts Those who are ready to be effective by 3 May.
Group – representing franchiseed dealers, suppliers and almost all major vehicle manufacturers – in a letter to the Trump administration officials say that upcoming levy can endanger American motor vehicle production. The letter states that many auto suppliers are already “in crisis” and will not be able to bear the increase in additional costs, causing comprehensive industry problems.
“Most auto suppliers are not capitalized for a sudden tariff -induced disruption. Many are already in crisis and will face production stagnation, trimming and insolvency,” written in the letter. “This only takes the failure of a supplier to shut down an automaker’s production line. When this happens, as it was done during the epidemic, all suppliers are affected, and the workers will lose their jobs.”
On April 21, the Dated letter, American Treasury Secretary Scott Besant, US Department of Commerce Secretary Howard Lutynik and US Trade Representative Ambassador Jaimison Greer have been addressed.
It is signed by heads of Automotive Innovation, American International Automobile Dealers Association, Autos Drive America, MEMA original equipment suppliers, National Automobile Dealers Association and American Automotive Policy Council.
The joint letter is not unprecedented to the motor vehicle industry, if not unprecedented. Organizations rarely, if, signed the same joint message.
Groups say they represent the country’s number 1 manufacturing sector that supports 10 million US jobs in all 50 states and pumps $ 1.2 trillion in the economy every year.
Vehicle manufacturers who do not represent by groups include electric vehicle manufacturers Tesla motors, Rivian motor vehicle And Lousid group,
“President Trump has indicated an openness to reconsider the 25 percent tariff of administration on imported motor vehicle parts – similar to recent consumer electronics and semiconductors approved tariff relief. This will be a positive development and reception relief,” written in the letter.
President Donald Trump said that a letter came after a week Some auto companies can “help” American vehicle requires more time to move or increase production.
Trump said on 14 April, “I am looking for something to help some car companies, where they are switching to some parts made in Canada, Mexico and other places, and they need some time because they are going to make them here.”
Auto officials and experts have Told CNBC Trump’s tariffs are more serious for auto suppliers than automkers. The effect can cause a wave effect through the global supply chain, they say.
Auto officials are expected to decline in vehicle sales in millions of units, high new and used vehicles, and the cost has increased More than $ 100 billion According to research reports by Wall Street and Automotive analysts, beyond the industry.
“We support more manufacturing and additional supply chains that run through the United States, but it is not possible to recreate global supply chains in overnight or months. It will take time,” reads the letter.
