Industry and Foreign Leaders Dour, Autoworkers Union Delighted at Trump Auto Tariffs

The American Automotive Policy Council, which represents the "Big Three" of U.S. automakers -- Ford, GMC and Stellantis (though Stellantis is foreign-owned) -- attempted to stay diplomatic. AAPC President Matt Blunt issued a statement saying that "U.S. Automakers are committed to President Trump’s vision of increasing automotive production and jobs in the U.S. ... [and] it is critical that tariffs are implemented in a way that avoids raising prices for consumers and that preserves the competitiveness of the integrated North American automotive sector that has been a key success of the President’s USMCA agreement."

U.S. automakers have previously received a reprieve from Trump's threat of 25% tariffs on Mexican and Canadian goods after intensive lobbying of the Trump administration (see 2503050057). Ford CEO Jim Farley said of those tariffs that "a 25% tariff across the Mexico and Canadian border will blow a hole in the U.S. industry that we have never seen."

The United Automobile, Aerospace and Agricultural Implement Workers of America, meanwhile, issued a statement calling the tariffs a "long-overdue shift" from economic policies that have "devastated the working class and driven a race to the bottom across borders in the auto industry." Auto tariffs demonstrate a prioritization of workers over "the greed of ruthless corporations" the organization added.

It accused the "Big Three" of having closed 65 auto facilities over the past 20 years but said that "with a serious tariff regime, we can incentivize the Big Three and the rest of the auto industry to reinvest in the American autoworker, and America’s blue-collar communities.

“We applaud the Trump administration for stepping up to end the free trade disaster that has devastated working class communities for decades," said UAW President Shawn Fain, who also said that "the Trump administration has made history with today’s actions.”

The National Taxpayers Union said that the tariffs could raise prices on U.S. automobiles by $4,451 for vehicles from Mexico and $6,532 for those from the EU, Japan and Korea. Bryan Riley, NTU's director of its free trade initiative, urged “Trump to focus on reducing taxes and regulations that discourage production in the United States" rather than "imposing costly tariffs on cars and trucks."

The National Foreign Trade Council issued a statement saying that the tariffs will cause "irreparable harm" to the U.S. automotive industry. “Placing tariffs on imports of autos risks damaging the competitiveness and export readiness of an industry that relies on integrated international supply chains and markets for its success," NFTC Vice President for Global Trade Policy Tiffany Smith said.

Autos Drive America CEO Jennifer Safavian said that, “At a time when cost is the number one concern for American car buyers, U.S. automakers are working to provide a range of affordable vehicles for consumers. The tariffs imposed today will make it more expensive to produce and sell cars in the United States, ultimately leading to higher prices, fewer options for consumers, and fewer manufacturing jobs in the U.S.”

Political leaders from across the world issued statements ranging from firm and combative to conciliatory. Democratic Senate Minority Leader Chuck Schumer, D-N.Y., lambasted the president's decision to impose tariffs on automobiles: "Make no mistake about it, Donald Trump's tariffs are a national sales tax on American families. Tariffs without a plan will only raise prices without anything to show for it."

The previous day he said on the Senate floor that "more and more people are learning that Donald Trump and his leadership in the economy, or lack of leadership, is far too erratic, far too unpredictable, and many Americans fear it's only the beginning."

Canadian Prime Minister Mark Carney posted on X, calling the tariffs "an attack on Canadian workers, families, and businesses," and saying that his government "will ensure our response has maximum impact in the US and minimal impact here in Canada, while supporting the workers impacted." He said that he will keep tariffs on the U.S. "until the Americans show us respect and make credible, reliable commitments to free and fair trade."

Mexican President Claudia Sheinbaum struck a more conciliatory tone, holding a press conference during which Economy Minister Marcelo Ebrard said that "if they are going to change the system, if we are going to a system of such high tariffs, what we have to seek is a preferential treatment for Mexico in a way that we have conditions that protect our jobs and economic activity in Mexico."

The reaction from European automakers was one of dismay: “European automakers have been investing in the US for decades, creating jobs, fostering economic growth in local communities, and generating massive tax revenue for the US government,” said European Automobile Manufacturers’ Association Director General Sigrid de Vries. “We urge President Trump to consider the negative impact of tariffs not only on global auto makers but on US domestic manufacturing as well.