*
Tesla opposes tariffs saying they could stall new
factories
*
Automakers say any tariffs should exclude tariffs for
robots
used in U.S. production
*
About 40% of new robots last year were for auto production
(Adds details, background in paragraphs 3-9)
By David Shepardson
WASHINGTON, Oct 22 (Reuters) - A group representing
nearly all major automakers on Wednesday urged the
administration of President Donald Trump not to impose tariffs
on factory robots and machinery.
The Alliance for Automotive Innovation, which represents
General Motors ( GM ), Toyota ( TM ), Volkswagen,
Hyundai and nearly all other major automakers, urged
the administration not to impose new tariffs after the Commerce
Department opened a national security probe last month. The
government can use such investigations to impose tariffs.
"Increasing the cost of equipment at existing facilities will
raise overall production costs for automotive manufacturers,
could cause production delays, and may result in vehicle
shortages and higher vehicle prices on American consumers at a
time when new vehicle prices are already at historic highs," the
group wrote in comments made public Wednesday.
The auto group cited a study showing that about 40% of all
robotics and industrial machinery installations in the U.S. in
2024 were in automotive production facilities. Automakers said
if the administration imposes tariffs, it should exempt robots
used in U.S. production.
Tesla, which is not part of the alliance,
separately called on the Trump administration not to impose
tariffs, saying they could "undermine investments, stall new
factories or upgrades to existing ones."
The White House did not immediately respond to a request for
comment.
Several foreign governments including China, Canada, Japan,
Switzerland and the European Union filed comments opposing the
tariffs.
In addition, tariffs and shortages will drive up costs and
consumer prices, warned the National Retail Federation, which
added that its members are increasingly using robotics in
stores, warehouses and distribution centers.
The U.S. Chamber of Commerce said some critical machinery is
only produced abroad, including equipment for extreme
ultraviolet lithography used for semiconductor manufacturing.
Tariffs could "undermine the very domestic semiconductor
manufacturing capacity the administration seeks to build," the
business group said.