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Automakers urge Trump not to impose tariffs on factory robots, machinery
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Automakers urge Trump not to impose tariffs on factory robots, machinery
Oct 22, 2025 4:01 PM

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Tesla opposes tariffs saying they could stall new

factories

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Automakers say any tariffs should exclude tariffs for

robots

used in U.S. production

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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.

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