According to CNBC, six influential policy organizations representing the U.S. automotive industry have taken the rare step of joining forces to pressure the Trump administration to halt a planned 25% tariff on auto parts, scheduled to take effect on May 3.
These groups, which represent authorized dealers, parts suppliers, and nearly all mainstream automakers, sent a joint letter on April 21 to U.S. Treasury Secretary Scott Bessent, Secretary of Commerce Howard Lutnick, and U.S. Trade Representative Ambassador Jamieson Greer.
The letter was signed by leaders from the Alliance for Automotive Innovation, the American International Automobile Dealers Association, Autos Drive America, the Manufacturers' Equipment Manufacturers Association (MEMA), the National Automobile Dealers Association, and the American Automotive Policy Council.
These organizations stated that they represent the largest manufacturing sector in the U.S., which supports 10 million jobs across all 50 states and contributes $1.2 trillion annually to the American economy. However, the letter noted that certain automakers, including electric vehicle manufacturers Tesla, Rivian Automotive, and Lucid, are not represented by these groups.
In the letter, the coalition warned that the impending tariffs could jeopardize U.S. auto production. It emphasized that many suppliers are already "struggling" and cannot absorb additional costs, placing the entire industry at risk. "Most auto parts suppliers are not prepared for the sudden supply chain disruptions triggered by tariffs. Many are already in a fragile state and could face shutdowns, layoffs, or even bankruptcy. The failure of even a single supplier could halt the production lines of automakers. If that happens, all suppliers will be affected, and workers will lose their jobs."
CNBC reported that this joint letter marks a highly unusual-possibly unprecedented-level of collaboration within the automotive industry, as these organizations rarely, if ever, co-sign such statements.
The letter stated, "President Trump has indicated a willingness to reconsider the 25% tariff on imported auto parts. This would be a welcome sign and a much-needed relief." A week earlier, Trump had suggested he might "help" some car companies that need more time to adjust or increase U.S. production.
On April 14, Trump said, "I'm looking for ways to help some automakers who are switching to parts made in Canada, Mexico, and other places. They need a bit more time because producing parts here takes time."
Several automotive executives and experts told CNBC that the administration's tariff measures would impact auto suppliers more severely than automakers themselves, with ripple effects likely across global supply chains. Wall Street and industry analysts estimate the tariffs could result in a decline of several million vehicle sales in the U.S., rising prices for both new and used cars, and more than $100 billion in additional industry costs.
