MichAuto Statement on Vehicle Import Tariffs

“Michigan automakers and suppliers anticipated the tariffs announced on all imported vehicles today. The President had previously signaled this. It appears that for the duration of his term, these tariffs will remain in effect, and they will include non-USMCA-compliant imported part components and the content of vehicles imported from Mexico and Canada that are non-USMCA-compliant.

This will impact the availability of products for consumers and will increase prices in the showrooms. Demand will be affected across the industry, and that will likely cause production cuts that will reverberate through the supply chain. This means jobs lost, increased input costs, and pressure on the balance sheets of companies large and small. Companies that export vehicles and parts to the U.S. will need to make decisions on whether existing facilities in the U.S. have capacity or can be expanded.

This is by no means a quick process, as safety, quality, and process requirements are stringent to build the most complex consumer product in the world. New component and assembly plants will also be evaluated, but this will take years to make happen. It will require very strategic market decisions by the industry, capital, the economic development selection process, and the availability of an hourly and skilled trade workforce. These are complex decisions that will take time, long past when the tariffs’ impact will be felt within the industry.”

– Glenn Stevens Jr., Executive Director, MichAuto, Detroit Regional Chamber