A group founded by former Vice President Mike Pence warned Monday that President Donald Trump’s auto tariffs could raise prices for vehicle owners across the country and potentially hurt the nation’s auto capital in Detroit.
Advancing American Freedom said Trump’s auto tariffs would mean higher costs on materials and parts for U.S. automakers, higher vehicle prices and higher repair costs for owners.
“A $2,000 transmission replacement just became $2,500 overnight,” the group said in a memo released Monday. “The tariff impact will grow even worse as older vehicles remain in use longer, driving up the need for repairs.”
Significant re-shoring of jobs could be years away.
Advancing American Freedom said the tariffs could result in job losses in Detroit.
“Continued implementation of the auto tariffs could kill 165,000 jobs – up to 20% of those employed in the auto manufacturing sector,” according to the memo.
The group said tariffs were a bad move.
“If you want to continue revitalizing America’s auto industry, manufacturers need cheaper energy, investments in efficient raw material production, right-to-work laws, and lower business taxes – not implement 25% tariffs and throw the entire industry into chaos,” Advancing American Freedom said.
The Center for Automotive Research issued a report in April that showed American automakers Ford, General Motors and Stellantis could see increased costs of more than $42 billion because of the 25% tariff placed on automakers.
“This in-depth study by the Center for Automotive Research demonstrates the significant cost a 25% tariff will have on the automotive industry,” Matt Blunt, president of the American Automotive Policy Council, said. “American Automakers Ford, GM, and Stellantis intend to maintain our ongoing dialogue with the administration to achieve our shared goal of increased U.S. automotive production.”
The American Automotive Policy Council was critical of a break given to UK automakers after Trump announced a deal with that country last week.
Trump’s framework for a trade deal with the United Kingdom includes lower tariffs on vehicles from that nation, a move that U.S. automakers oppose. Under the framework of the UK deal, the first 100,000 vehicles imported from UK manufacturers each year will be subject to a 10% tariff. Any additional vehicles each year would be subject to the higher 25% rate. The U.S. will also negotiate an alternative arrangement with the UK on steel and aluminum, according to the White House.
Blunt said the import duties on UK vehicles could end up being lower than those on American-made vehicles.
“The U.S. automotive industry is highly integrated with Canada and Mexico; the same is not true for the U.S. and UK,” he said. “We are disappointed that the administration prioritized the UK ahead of our North American partners.”
