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Currently, the Trump administration's 25% tariffs on imported cars and 25% tariffs on steel and aluminum products remain in effect. The Detroit Regional Chamber and the Michigan Automotive Association stated in a new announcement that Michigan's automotive industry, its upstream and downstream supply chains, and employees continue to bear the uncertainty and disruptions caused by the tariff policies.
These two organizations called on Trump to protect the complex international supply chain framework of the automotive industry to prevent it from being harmed and to avoid weakening its global competitiveness.
On Wednesday, Trump indicated that he would consider granting tariff exemptions to some US companies, but it remains unclear whether automakers will be included.
Michigan is the leading region for the US automotive industry. According to data from the Detroit Regional Chamber, over 280,000 Michigan residents work in the automotive sector, and the state is home to more than 2,200 automotive suppliers and technology center facilities.
The automotive tariffs implemented by Trump have significantly disrupted the normal operations of the state's pillar industry. Michigan's Democratic Governor Gretchen Whitmer once again called on Wednesday for Trump to exempt automotive products from tariffs.
Whitmer stated that tariffs need to exclude cars and energy, as these two industries are crucial for manufacturers and directly impact people's wallets.
Earlier this week, an automotive consulting firm predicted that if the global trade war escalates, auto sales in the US and Canada could drop by 1.8 million units this year and stagnate over the next decade.
Analysts also widely expect that the new tariffs will drive up the prices of new and used cars in the US. Market estimates suggest that the price increase for domestically produced cars will be around $3,000, while imported car models will exceed $10,000.
Starting May 3, a 25% import tariff on auto parts will also take effect, and US automakers are currently anxiously preparing for this.
Meanwhile, since China is not on Trump's list for the temporary suspension of reciprocal tariffs, many automotive suppliers are concerned about the upcoming cost issues. A significant portion of new and used car parts in the US come from China, which means the costs of new car manufacturing and used car repairs will further increase.
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