① In response to the upcoming Auto Parts tariff, six major organizations representing America's Car-Mart have unusually united to lobby the Trump administration against imposing this tariff; ② In a letter to officials in the Trump administration, they stated that the impending tariff could jeopardize auto production in the USA, with many auto suppliers already "in dire straits."
According to a report on April 23 by the Financial Association (Editor: Bian Chun), in response to the upcoming Auto Parts tariff, six major organizations representing America's Car-Mart have unusually united to lobby the Trump administration against imposing this tariff.
At the end of last month, President Trump signed an executive order announcing a 25% tariff on imported autos, with related measures officially taking effect on April 3 and plans to impose a 25% tariff on Auto Parts starting May 3.
These organizations represent licensed Dealers, suppliers, and almost all major Auto Manufacturers. In a letter to officials in the Trump administration, they stated that the impending tariff could jeopardize auto production in the USA. The letter pointed out that many auto suppliers are already "in dire straits," unable to absorb the additional cost increases, which could lead to broader Industry issues.
"Most auto suppliers are unable to cope with the chaos triggered by the sudden imposition of tariffs. Many suppliers are already in trouble and will face production shutdowns, layoffs, and bankruptcies." The letter stated. "If just one supplier has issues, it can halt the production lines of auto manufacturers. When this happens—just like during the pandemic—all suppliers will be affected, and workers will lose their jobs as a result."
Dated April 21, this letter was signed by the heads of the Auto Innovation Alliance, the USA International Auto Dealers Association, the USA Automotive Drive Association, the USA Engine and Equipment Manufacturers Association, the USA National Automobile Dealers Association, and the USA Automotive Policy Council. The recipients were Treasury Secretary Basent, Commerce Secretary Lutnik, and Trade Representative Ambassador Greer.
For the auto Industry, this joint letter is not unprecedented, but it is unusual. These organizations have rarely signed joint letters.
These organizations stated that they represent the largest manufacturing sector in the USA, which provides 10 million jobs across all 50 states and injects $1.2 trillion into the economy each year.
It is worth noting that,$Tesla (TSLA.US)$、 $Rivian Automotive (RIVN.US)$ 以及 $Lucid Group (LCID.US)$ Not on the list of auto manufacturers represented by these organizations.
"President Trump has expressed willingness to reconsider the government's imposition of a 25% tariff on imported auto parts - similar to the recently approved tariff reduction exemptions for Consumer Electronics and Semiconductors. This would be a positive development and a reassuring measure," the letter stated.
Last week, Trump stated that he is considering granting America's Car-Mart tax exemptions on imported parts to help them transition to producing parts in the USA. He mentioned that it takes time for automakers to produce in the USA, so he is considering taking measures to assist them, allowing them time to adjust their supply chains.
"We support increasing the manufacturing aspects and supply chains within the USA, but the routes of global supply chains cannot change overnight or even in a few months. It takes time," the letter stated.
Some auto industry executives and experts pointed out that Trump's tariffs on autos and auto parts impact auto suppliers more than auto manufacturers. This effect could trigger a chain reaction within the global supply chain.
Research reports from Wall Street and auto Analysts show that officials in the auto Industry expect auto sales in the USA to decline by several million vehicles, with prices for new and used cars rising, and the overall cost for the auto Industry increasing by over 100 billion dollars.
Editor/Rocky
