President Donald Trump on Wednesday paused for 90 days many tariffs but is not halting 25per cent tariffs on automotive imports and looming tariffs on auto parts, drawing criticism from Michigan business and auto groups.
The Detroit Regional Chamber and MichiganAuto called on Trump to protect the automotive industry’s complex international supply chain framework from harmful fragmentation that weakens its global competitiveness.
“Michigan’s signature industry and the supply chains and employees that sustain it will continue to endure the uncertainty and disruption of these fluctuating trade policies,” they said in a statement after last month warning the tariffs would result in significant pain for autoworkers.
The groups noted that Trump was also leaving in place 25per cent tariffs on aluminum and steel that are also impacting automakers.
Trump said Wednesday he is considering granting some U.S. companies an exemption from his tariff program but it is unclear if he is considering automakers.
“There are some that have been hard,” Trump told reporters when asked about companies requesting exemptions. “There are some that, by the nature of the company, get hit a little bit harder. We’ll take a look at that.”
Michigan Governor Gretchen Whitmer, a Democrat, on Wednesday in Washington called for exempting autos from tariffs.
“Let’s carve out autos and energy, both of which are critical to manufacturers and directly impact people’s wallets,” she said.
Earlier this week, a Detroit-area automotive advisory firm forecast U.S. and Canada auto sales could decline by 1.8 million vehicles this year and be stagnant over the next decade if the global trade war escalates,
Trump’s 25per cent automotive import tariffs went into effect April 3. Vehicles made in Mexico and Canada face the levy, but automakers compliant with the terms of the U.S.-Mexico-Canada Agreement can deduct the value of U.S. content.
New 25per cent tariffs on auto parts are to take effect by May 3.
Chrysler-parent Stellantis said last week it is temporarily shutting down production at two plants in Mexico and in Canada, affecting five U.S. facilities that are connected to them, including temporarily laying off 900 U.S. workers.
Other automakers are limiting some U.S. vehicle imports to reduce the impact of the tariffs.
