Automakers Scramble to Persuade Trump To Reduce Certain Tariffs

This is because, as we’ve explained, even cars built in the U.S. use parts sourced from overseas — parts that will be subject to tariffs. So even if a car seemingly would be exempt from tariffs because it’s built in the States, some of its parts will be slapped with tariffs, thus possibly raising prices.

Bloomberg reports that Ford, General Motors, and Stellantis have put their lobbying arms to work.

From Bloomberg:

Ford Motor Co., General Motors Co. and Chrysler parent Stellantis NV are lobbying the administration to exclude certain low-cost car components from the planned tariffs, according to people familiar with the matter. Executives have met with the White House, the Commerce Department and the office of the US Trade Representative to discuss the exclusion, said the people, who asked not to be identified revealing internal discussions.

American carmakers have seemingly accepted that they won’t be able to stop tariffs on fully built vehicles or large components like transmissions.

Still, they’ve argued to Trump and the administration that tariffs will drive up their costs by billions, lead to layoffs, and hurt the industry instead of helping, as Trump has claimed.

The parts that automakers would like to see exempted include wiring.

Trump’s proposed 25 percent tariffs on fully built cars are set to go into effect on Wednesday, but tariffs on large components aren’t set to start until May 3. So there may be some time still for automakers to make headway with the administration.

After all, as Bloomberg points out, many small, low-cost parts are built overseas. If Trump tariffs these components, very few, if any, cars sold in the U.S. would be unaffected by tariffs.

Automakers are also trying to appease the administration by promising to shift production to the U.S., but since that takes time, the car companies are more concerned about parts prices in the short term.

[Image: zimmytws/Shutterstock.com]

Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by  subscribing to our newsletter.