Six trade groups representing automakers urged the Trump administration to reconsider a 25% tariff on auto parts before it takes effect on May 3. The tariff is estimated to increase production costs for U.S. automakers by $108 billion in 2025, ultimately raising prices for consumers.
Flavio Volpe warned that a single supplier’s failure could halt production lines for automakers and that the auto industry’s supply chain cannot be easily modified.
The letter from auto industry groups emphasized that the tariffs would raise consumer prices and complicate vehicle servicing and repairs.
