Auto Tariffs Drive Up Prices, Hurt Jobs: Demand Smarter Trade Policies

I am writing to express concern over the recent 25% tariffs imposed on imported automobiles and auto parts. While the intention may be to bolster domestic manufacturing, evidence from economists and industry experts indicates that these tariffs are causing significant harm to American consumers, workers, and the broader economy. According to the Center for Automotive Research, the average cost of a vehicle assembled in the U.S. could increase by approximately $6,000 due to these tariffs, as no vehicle is entirely domestic and all contain some imported components. This price hike affects over 10 million vehicles produced annually in the U.S. Additionally, the Brookings Institution notes that such tariffs disrupt the integrated North American supply chain established under the USMCA, leading to increased production costs and potential job losses. The Federal Reserve has also expressed concerns about the inflationary impact of these tariffs. Vice Chair Philip Jefferson highlighted that the tariffs could drive up inflation and negatively affect the job market, complicating the Fed’s efforts to maintain economic stability. Furthermore, retaliatory tariffs from trade partners like the EU and China threaten U.S. exports, potentially leading to a decline in manufacturing jobs and overall economic growth. Given these findings, I urge you to reconsider the current tariff policy on automobiles and auto parts. A more strategic approach that supports domestic manufacturing without imposing undue costs on consumers and risking international trade relationships is essential. Collaboration with industry stakeholders and trade partners can lead to policies that strengthen the U.S. auto industry while safeguarding economic stability and consumer interests.