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Trump draws criticism from Michigan business and auto groups as auto tariffs remain
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Trump draws criticism from Michigan business and auto groups as auto tariffs remain
Apr 9, 2025 8:35 PM

WASHINGTON, April 9 (Reuters) - President Donald Trump

on Wednesday paused for 90 days many tariffs but is not halting

25% tariffs on automotive imports and looming tariffs on auto

parts, drawing criticism from Michigan business and auto groups.

The Detroit Regional Chamber and MichiganAuto called on

Trump to protect the automotive industry's complex international

supply chain framework from harmful fragmentation that weakens

its global competitiveness.

"Michigan's signature industry and the supply chains and

employees that sustain it will continue to endure the

uncertainty and disruption of these fluctuating trade policies,"

they said in a statement after last month warning the tariffs

would result in significant pain for autoworkers.

The groups noted that Trump was also leaving in place 25%

tariffs on aluminum and steel that are also impacting

automakers.

Trump said Wednesday he is considering granting some U.S.

companies an exemption from his tariff program but it is unclear

if he is considering automakers.

"There are some that have been hard," Trump told reporters

when asked about companies requesting exemptions. "There are

some that, by the nature of the company, get hit a little bit

harder. We'll take a look at that."

Michigan Governor Gretchen Whitmer, a Democrat, on Wednesday

in Washington called for exempting autos from tariffs.

"Let's carve out autos and energy, both of which are

critical to manufacturers and directly impact people's wallets,"

she said.

Earlier this week, a Detroit-area automotive advisory firm

forecast U.S. and Canada auto sales could decline by 1.8 million

vehicles this year and be stagnant over the next decade if the

global trade war escalates,

Trump's 25% automotive import tariffs went into effect April

3. Vehicles made in Mexico and Canada face the levy, but

automakers compliant with the terms of the U.S.-Mexico-Canada

Agreement can deduct the value of U.S. content.

New 25% tariffs on auto parts are to take effect by May 3.

Chrysler-parent Stellantis ( STLA ) said last week it is

temporarily shutting down production at two plants in Mexico and

in Canada, affecting five U.S. facilities that are connected to

them, including temporarily laying off 900 U.S. workers.

Other automakers are limiting some U.S. vehicle imports to

reduce the impact of the tariffs.

(Reporting by David Shepardson; Editing by Chris Reese and

Lincoln Feast.)

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