Auto Groups Unite To Lobby Against Trump, Say Many Suppliers Are Already 'In Distress'

• Six of the top policy groups representing the U.S. automotive industry sent a letter to Trump administration officials, asking them to reconsider the 25% tariffs on auto parts
• The letter says that many auto suppliers in the U.S.  are already "in distress," and that the tariffs could put the entire industry in jeopardy
• Trump has said that he is looking for ways to help "some of the car companies," although what form that assistance may take is still unclear

Six of the top policy groups representing the U.S. automotive industry sent a letter to officials in the Trump administration urging them to reconsider tariffs on the industry on Tuesday.

Earlier this month, President Donald Trump announced 25% tariffs on auto parts. The levies are set to take effect on Saturday, although there has been discussion of exemptions. 

In the letter, the groups say that many auto suppliers who are already "in distress" won't be able to afford the additional cost increases. If the tariffs go forward as planned, experts warn that automotive production in the country would be in jeopardy.

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The letter, which is addressed to Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, reads, in part, according to Reuters, "Most auto suppliers are not capitalized for an abrupt tariff induced disruption. Many are already in distress and will face production stoppages, layoffs and bankruptcy. It only takes the failure of one supplier to lead to a shutdown of an automaker's production line. When this happens, as it did during the pandemic, all suppliers are impacted, and workers will lose their jobs."

The letter is signed by the heads of the Alliance for Automotive Innovation, American International Automobile Dealers Association, Autos Drive America, vehicle suppliers association MEMA, National Automobile Dealers Association, and American Automotive Policy Council. According to the groups, they represent the country's No. 1 manufacturing sector, and that the automotive industry provides 10 million jobs in all 50 states and contributes $1.2 trillion into the economy each year. 

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The groups seem to have hope that their pleas won't fall on deaf ears. "President Trump has indicated an openness to reconsidering the administration's 25% tariffs on imported automotive parts – similar to the tariff relief recently approved for consumer electronics and semiconductors. That would be a positive development and welcome relief," another section of the letter reads, according to CNBC. 

Trump has previously talked about being willing to help some of the car companies as they work on moving production.

"I'm looking for something to help some of the car companies, where they're switching to parts that were made in Canada, Mexico and other places, and they need a little bit of time because they're going to make them here… But they need a little bit of time, so I'm talking about things like that,' Trump told reporters on April 14.

CNBC reports that the auto groups' letter concludes with, "We support more manufacturing and additional supply chains that run through the United States, but it is not possible to reroute global supply chains overnight or even in months. This will take time."

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