US Car Makers Urgently Press Trump to Ease Tariff Heat

(GudangMovies21) -- Supply Lines is a daily bulletin that monitors international commerce. Sign up here .

American car manufacturers are making one final attempt to convince the Trump administration about the impending tariffs scheduled for implementation later this week, arguing that taxes imposed on the myriad components sourced internationally could lead to severe consequences for their sector.

Ford Motor Co., General Motors Co., and Stellantis NV, which owns Chrysler, are urging the administration to exempt specific inexpensive automotive parts from proposed tariffs. According to sources close to the situation—who declined to be named due to confidentiality reasons—the executives have held talks with the White House, the Commerce Department, and the U.S. Trade Representative’s office regarding these exclusions.

President Donald Trump’s tariffs, designed to strengthen the U.S. auto sector, could have widespread impacts on American automakers who have progressively sourced numerous parts for contemporary cars from lower-cost nations. The administration intends to impose taxes not only on finished vehicles but also on automotive components as part of their strategy. 25% tariffs On completely assembled vehicles, which are scheduled to begin production on April 3rd.

In recent weeks, numerous automobile manufacturers have accumulated vehicles in the U.S. to dodge the effects of tariffs, as well as to benefit car purchasers. flocked to dealerships To complete purchases before the tariffs were implemented. The effect of this short-term increase in demand will become clear on Tuesday when most companies release their U.S. automobile sales figures. sales results for the first quarter.

The Detroit auto manufacturers have admitted that they are prepared to bear the cost of tariffs on finished vehicles as well as major components such as engines and transmissions, according to individuals privy to these discussions. However, company representatives informed the administration that imposing duties on parts could increase expenses by several billion dollars, potentially resulting in job cuts and reduced profits—outcomes that would contradict President Trump’s aim to strengthen the automotive sector, noted one source.

The representatives of the corporations chose not to make comments. On Monday, Trump refrained from stating whether the administration plans to grant exemptions for certain automobile components from the tariffs. He mentioned that he has already offered manufacturers "some relief" by delaying the tariff implementation for one month.

US firms are pursuing waivers for minor components such as bundles of electric wires used extensively in contemporary vehicles, which require significant manual work typically carried out in Mexico and other lower-cost economies. These businesses contend that the cumulative tariffs could lead to skyrocketing vehicle costs and reduce consumer interest among Americans, many of whom now face nearly record-high average pricing. $50,000 .

Discussing the tariffs over the weekend, Trump stated to told NBC News he "doesn't care at all about price increases since people will begin purchasing American vehicles."

The semiconductor shortage that disrupted the auto industry following the pandemic highlighted the vulnerability of the worldwide supply chain for vehicle components, according to Jessica Caldwell, who leads insights at automotive research firm Edmunds.com.

“Automakers are understandably concerned that tariffs on all parts could trigger similar issues,” Caldwell said. “Considering the vast number of parts in a vehicle, such disruptions seem almost inevitable. Increased pressure on these smaller suppliers could lead to business failures, potentially causing significant chaos in vehicle production.”

Top Executives

With the tariff deadline looming, senior executives from automotive companies have traveled to Washington recently to engage in direct lobbying with the administration, sources close to the situation say.

On Monday, Trump stated that he had a meeting with John Elkann, the chairman of Stellantis. Additionally, he also met with Bill Ford, who serves as the executive chair at Ford. great-grandson Last week, Founder Henry Ford’s successor met with Commerce Secretary Howard Lutnick. General Motors CEO Mary Barra, CFO Paul Jacobson, along with other executives, have been holding meetings with administration officials ever since the president declared the tariffs, according to sources close to the situation.

Although Trump’s executive order mandates a 25% tariff on complete vehicles starting from April 3rd, the duties on key components like engines, transmissions, and electrical systems will only commence on May 3rd. Additionally, the President intends to unveil reciprocal tariffs In several nations on April 2, it remains uncertain if these benchmarks indicate the final dates by which an agreement concerning automobile components needs to be secured.

The automotive manufacturers believe they have an opportunity to secure tariff reductions on components because that part of Trump’s executive order was developed later, as someone stated, when the document was being prepared on March 26.

Ever since, company leaders along with their representatives have strived to inform the government about the intricacies involved in the worldwide economic system governing automobile component manufacturing.

For instance, inexpensive generic components such as display screens are predominantly manufactured offshore where labor costs are lower. The source mentioned that should all automotive parts produced internationally face import duties, then very few, if any, tariff-free vehicles would be available for purchase within the U.S. marketplace.

In an effort to gain Trump's favor, the automotive representatives have highlighted their agreement with his objectives of increasing automobile production within the U.S. and boosting American manufacturing capabilities. While they've committed to developing strategies for this purpose, their primary focus at present is securing concessions related to components.

--Assisted by Josh Wingrove, Gabrielle Coppola, Jennifer A. Dlouhy, and Lindsay Blakley.

(Updated version including specific information about automobile manufacturer sales in the fourth paragraph.)

Most Read from GudangMovies21

• What Frank Lloyd Wright Discovered in the Desert
• The Rush for Gold Is Back in the historic New Zealand Mining Town
• Bank Regulators Struggle for Office Spaces as OCC Relocates Back to New York Skyscraper
• London Overcomes Last Obstacle for Additional High-Speed Rail Services to Europe

©2025 GudangMovies21L.P.