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Rep. Thanedar dubs Trump’s auto tariffs as ‘inflationary’
“I stand in strong opposition to President Trump’s blanket tariffs on foreign autos and auto parts,” Thanedar said.
Shri Thanedar / File Photo
Indian American Congressman Shri Thanedar strongly opposed President Donald Trump’s imposition of tariffs on imported automobiles and auto parts, calling them "inflationary" to the U.S. auto industry.
The tariffs, set to take effect on April 2, impose a 25 percent duty on imported vehicles and auto parts. While the Trump administration argues that the measure will boost domestic manufacturing, critics warn it could lead to higher car prices, reduced sales, and job losses in the auto sector.
Also Read: Auto industry rocked by Trump's 25% tariffs on US imports
Thanedar, representing Michigan's 13th Congressional District, emphasized that the tariffs could raise vehicle prices by $5,000 to $10,000, increasing monthly payments and insurance costs for consumers. He also highlighted the auto industry’s reliance on foreign components, warning that the tariffs would disrupt supply chains and hurt American automakers.
“I stand in strong opposition to President Trump’s blanket tariffs on foreign autos and auto parts,” Thanedar said. “While I support efforts to strengthen the manufacturing industry and the jobs they create, this is not the way to accomplish that.”
He further cautioned that declining auto sales would reduce profits for manufacturers, leading to layoffs and wage cuts for American workers. “This decrease in sales will end up hurting American auto workers,” Thanedar added, warning that retaliatory tariffs from other countries could worsen inflation.
Tariff aftermath
The tariffs have already impacted financial markets, with shares of major U.S. automakers like General Motors and Ford declining after the announcement. In contrast, electric vehicle manufacturers such as Tesla and Rivian saw stock gains, as their domestic production is less reliant on imported components.
Industry analysts predict that the tariffs could add up to $100 billion in annual costs to the auto sector. These expenses are expected to be passed on to consumers, straining household budgets and slowing demand.
Canadian Prime Minister Mark Carney labeled the tariffs a "direct attack" on Canadian autoworkers and indicated that Canada would implement countermeasures to protect its auto industry.
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