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OEM Group Protests Auto Tariffs

Alliance for Automotive Innovation says 25% duties would cut U.S. sales, raise vehicle prices.

April 2, 2025
OEM Group Protests Auto Tariffs

The trade group says auto manufacturing is “America’s largest manufacturing sector” already.

Credit:

Pexels/Tom Fisk

2 min to read


 

An automaker trade group says new U.S. trade tariffs on vehicles will but a damper on sales here and drive up prices for American consumers.

The Alliance for Automotive Innovation released a statement by President and CEO John Bozzella pointing out automakers’ current contributions to the U.S. economy and how the group believes new tariffs will actually weaken that impact.

“Additional tariffs will increase costs on American consumers, lower the total number of vehicles sold inside the U.S. and reduce U.S. auto exports – all before any new manufacturing or jobs are created in this country,” Bozzella said.

President Donald Trump has said the U.S. will impose 25% tariffs on imported autos starting April 3 and on auto parts starting May 3, with the stated goal of strengthening the U.S. manufacturing base and national security.

But Bozzella pointed out that the complex supply and manufacturing web that automakers rely on “can’t be relocated or redirected overnight.”

The trade group called auto manufacturing “America’s largest manufacturing sector” already.

“Automakers, battery makers and parts suppliers have invested billions in American manufacturing and directly support communities and American workers in Michigan, Tennessee, South Carolina, Alabama, Mississippi, Kentucky, Ohio, West Virginia, Texas, Indiana, Illinois, Missouri, Georgia, New York and more,” Bozzella said.

Auto industry analysts say the promised tariffs would increase the already inflated price of new vehicles by thousands of dollars at a time that many consumers are struggling to afford today’s prices.

“Automotive facilities and global supply chains create American jobs, provide Americans with vehicle choice and the big one – support auto affordability in America,” Bozzella said.

LEARN MORE: Tariff Tangle Could Be Bad News for Sales

 

 

 

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