Six Major U.S. Auto Organizations Jointly Lobbied the Trump Administration: Do Not Impose Tariffs on Parts!

Facing the impending tariffs on auto parts, six major organizations representing the US automotive industry have unusually united, lobbying the Trump administration not to impose these tariffs.

At the end of last month, US President Trump signed an executive order, announcing a 25% tariff on imported vehicles, with the measures officially taking effect on April 3, and planning to impose a 25% tariff on auto parts starting May 3.

These organizations represent franchised dealers, suppliers, and nearly all major automakers. In a letter to Trump administration officials, they stated, the impending tariffs could jeopardize US auto production. The letter pointed out, many auto suppliers are already "in distress" and cannot bear additional cost increases, leading to broader industry issues.

"Most auto suppliers are unable to cope with the chaos caused by the sudden imposition of tariffs. Many suppliers are already in distress and will face shutdowns, layoffs, and bankruptcies," the letter stated. "Just one supplier's problem can halt an automaker's production line. When this happens—as it did during the pandemic—all suppliers are affected, and workers lose their jobs."

The letter, dated April 21, was signed by the heads of the Alliance for Automotive Innovation, the American International Automobile Dealers Association, the Motor & Equipment Manufacturers Association, the National Automobile Dealers Association, and the American Automotive Policy Council. The recipients were US Treasury Secretary Besant, Commerce Secretary Lutnick, and Trade Representative Ambassador Greer.

For the automotive industry, this joint letter is unusual, if not unprecedented. These organizations have rarely signed joint letters.

These organizations stated that they represent the largest manufacturing sector in the US, which provides 10 million jobs across all 50 states and injects $1.2 trillion into the economy annually.

Notably, Tesla, Rivian, and Lucid are not among the automakers represented by these organizations.

"President Trump has expressed willingness to reconsider the administration's 25% tariff on imported auto parts—similar to the recently approved tariff exemptions for consumer electronics and semiconductors. This would be a positive development and a reassuring move," the letter stated.

Trump said last week that he is considering granting US automakers exemptions from tariffs on imported parts to help them shift to producing parts in the US. He stated that it takes time for auto companies to produce in the US, so he is considering measures to help automakers adjust their supply chains.

"We support increasing manufacturing and supply chain activities within the US, but the global supply chain route cannot change overnight or even within months. It takes time," the letter stated.

Some auto industry executives and experts pointed out that Trump's tariffs on vehicles and auto parts have a greater impact on auto suppliers than on automakers. This impact could trigger a chain reaction in the global supply chain.

Research reports from Wall Street and auto analysts show that auto industry officials expect US auto sales to drop by millions of units, with prices of new and used cars rising, and the overall cost of the auto industry increasing by over $100 billion.