- Trump’s administration opened a national security probe into factory robots.
- Automakers like Ford, GM, Kia, Mercedes, and Honda fear new tariffs.
- Global governments have urged Trump’s team not to impose more tariffs.
Tariffs have long been a sore point in the auto industry, shaping everything from vehicle prices to where manufacturers choose to build their cars. Now, that debate has flared up again.
Most of America’s biggest carmakers are now urging the Trump administration to back away from plans to impose tariffs on factory robots and industrial machinery, warning that such a move could (also) sharply raise the cost of building vehicles in the United States.
Read: China Turns Up The Pressure As Canada Reconsiders Its EV Tariffs
The Alliance for Automotive Innovation made its case in a letter to Julia Khersonky, Deputy Assistant Secretary for Strategic Trade, highlighting that roughly 40 percent of all robotics and machinery installations nationwide are tied to automotive production.
The letter stressed that automation remains central to modern car manufacturing, supporting “workers with tasks such as painting, welding, high-speed fastening, and material handling.”
The Machinery Behind the Numbers
The powerful lobby, which represents companies such as Ford, GM, JLR, Kia, Mazda, Mercedes, Mitsubishi, Nissan, Porsche, Stellantis, Subaru, Honda, Toyota, BMW, and others, sent the letter shortly after the US Commerce Department opened a national security probe into factory robots and machinery. These probes can be used to introduce new tariffs.
“Increasing the cost of equipment at existing facilities will raise overall production costs for automotive manufacturers, could cause production delays, and may result in vehicle shortages and higher vehicle prices on American consumers at a time when new vehicle prices are already at historic highs,” the group warned.
It also noted that potential tariffs on robotics and industrial machinery “could be particularly profound for automotive suppliers in the US,” noting that at least 20 percent of local suppliers “are already in financial distress.”
If tariffs are imposed by President Donald Trump, the alliance has urged the administration to “provide options for relief for robotics and industrial machinery that are used to enable, enhance, or maintain automotive manufacturing, assembly, or production facilities.”
Reuters reports that Tesla has separately urged the Trump administration not to impose these tariffs. Governments, including China, Switzerland, Japan, Canada, and the EU, have also expressed their opposition.
Thanks From GM And Ford
Word of the campaign against potential new tariffs comes shortly after President Trump announced new levies on medium and heavy-duty trucks being imported into the United States. Starting November 1, these models will be hit with 25 percent tariffs.
Posting on Truth Social, the president claimed that executives at both GM and Ford personally thanked him for introducing the new tariffs. Executives at Stellantis, however, are unlikely to share the enthusiasm, as many of its medium- and heavy-duty trucks are built in Mexico.
