Major automakers and parts suppliers representing the U.S. auto industry are urging President Donald Trump to repeal the 25% additional tariff on imported auto parts.
On Tuesday, some industry groups representing global automakers and parts suppliers, including General Motors (GM), Toyota Motor, Volkswagen, and Hyundai Motor, jointly sent a letter to the Office of the U.S. Trade Representative (USTR), the Department of Commerce, and the Treasury Department expressing their concerns.
President Trump had previously indicated that he planned to impose an additional 25% tariff on imported auto parts by May 3.
In the letter, the groups warned that if the tariffs are implemented, they could significantly disrupt the global auto supply chain and lead to negative ripple effects such as increased consumer prices, reduced sales, and higher maintenance and repair costs.
Ford has recently announced that it is considering raising the prices of new cars if the tariffs remain in place.
The Michigan Center for Automotive Research (CAR) estimated that the import car tariffs initiated by President Trump on April 3 would add approximately 108 billion USD in costs to the U.S. auto industry by 2025.
Through this letter, the industry is asking former President Trump to make a careful decision considering the impact on the entire auto industry.
