Six major policy groups representing nearly the entire U.S. automotive sector have joined forces to oppose the Trump administration’s planned 25% tariffs on imported auto parts, set to take effect by May 3. The coalition, typically not aligned in joint actions, has issued a formal letter to senior administration officials warning that the new tariffs could severely disrupt the nation’s largest manufacturing industry.
The letter, dated April 21, is addressed to Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Ambassador Jamieson Greer. It warns that many auto suppliers, already financially strained, will not survive the sharp cost increases, potentially leading to production stoppages, mass layoffs, and even bankruptcies.
The letter underscores the systemic risk posed by tariff-driven disruption. It explains that the failure of just one supplier can halt entire production lines, echoing the supply chain chaos experienced during the pandemic. The signatories include the Alliance for Automotive Innovation, American International Automobile Dealers Association, Autos Drive America, MEMA, the National Automobile Dealers Association, and the American Automotive Policy Council.
Together, these organizations represent a sector that supports 10 million jobs across all 50 states and contributes $1.2 trillion to the U.S. economy annually. Notably absent from the coalition are electric vehicle companies like Tesla, Rivian, and Lucid Group, which are not represented by these trade associations.
The groups acknowledged President Trump’s recent comments suggesting he may reconsider the tariffs, especially in light of similar relief offered to consumer electronics and semiconductor sectors. They view this as a potentially positive development and a step toward stabilizing the supply chain.
Trump recently mentioned that he is exploring ways to support automakers transitioning their production to the U.S. but stressed that companies need more time to shift from suppliers in Mexico, Canada, and other countries.
Industry leaders warn that the proposed tariffs could result in higher costs totaling over $100 billion, decreased vehicle sales, and rising prices for both new and used cars. While the groups support expanded domestic manufacturing, they emphasized that realigning global supply chains cannot happen overnight and will require a carefully managed transition period.
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