Automakers Inform Trump That His Tariffs on Factory Robots Will Increase Car Prices for Consumers | Carscoops

      Ford, GM, Toyota, and other automakers caution Trump that imposing taxes on factory robots won't protect jobs, but could lead to higher prices for consumers.

      Recently, the Trump administration initiated a national security investigation concerning factory robots.

      Automakers including Ford, GM, Kia, Mercedes, and Honda express concerns over potential new tariffs. Global governments have advised Trump's administration against imposing additional tariffs.

      Tariffs have historically been a contentious issue in the automotive sector, influencing vehicle prices and manufacturers' decisions on production locations. This issue has resurfaced once more.

      Now, many of America’s leading car manufacturers are urging the Trump administration to reconsider plans to impose tariffs on factory robots and industrial machinery, warning that such actions could significantly increase the costs of manufacturing vehicles in the United States.

      The Alliance for Automotive Innovation communicated their concerns in a letter to Julia Khersonky, Deputy Assistant Secretary for Strategic Trade, emphasizing that approximately 40 percent of all robotics and machinery installations in the country are related to automotive production.

      In the letter, they emphasized that automation plays a crucial role in modern car manufacturing, aiding workers in tasks like painting, welding, high-speed fastening, and material handling.

      The Machinery Behind the Numbers

      The influential lobby, representing companies such as Ford, GM, JLR, Kia, Mazda, Mercedes, Mitsubishi, Nissan, Porsche, Stellantis, Subaru, Honda, Toyota, BMW, and others, sent this letter following the US Commerce Department's initiation of a national security investigation into factory robots and machinery. Such investigations can pave the way for new tariffs.

      The group cautioned, “Increasing the cost of equipment at existing facilities will elevate overall production costs for automotive manufacturers, potentially cause production delays, and result in vehicle shortages and higher prices for American consumers at a time when new vehicle prices are already at historic levels.”

      They also pointed out that prospective tariffs on robotics and industrial machinery “could have significant implications for automotive suppliers in the US,” noting that at least 20 percent of local suppliers “are already facing financial challenges.”

      If tariffs are enacted by President Donald Trump, the alliance has called on the administration to “provide relief options for robotics and industrial machinery used in automotive manufacturing, assembly, or production facilities.”

      According to Reuters, Tesla has also urged the Trump administration to refrain from implementing these tariffs. Governments in China, Switzerland, Japan, Canada, and the EU have similarly voiced their opposition to them.

      Gratitude From GM and Ford

      The news of the campaign against the possible new tariffs comes shortly after President Trump announced new tariffs on medium and heavy-duty trucks being imported into the US, which will see a 25 percent levy starting November 1.

      On Truth Social, the president claimed that executives from both GM and Ford personally expressed their gratitude for these newly introduced tariffs. However, executives at Stellantis may not share this sentiment, as many of their medium and heavy-duty trucks are manufactured in Mexico.