Auto advocates want Trump to hit the brakes on tariffs

The heads of the Detroit Regional Chamber and the trade association MichAuto are just two of the many business leaders requesting a pause to tariffs.

They sent a letter last week asking the White House to avoid tariffs on auto parts and vehicles and instead renegotiate the free trade agreement between the U.S., Mexico and Canada (USMCA.)

The administration enacted the auto tariffs anyway.

Now MichAuto Executive Director Glenn Stevens Jr. says price hikes are both inevitable and potentially damaging to Michigan’s economy.

Listen: Auto advocates want Trump to hit the brakes on tariffs

The following interview has been edited for clarity and length. Listen to the full conversation above.

Glenn Stevens, Jr., MichAuto: (Interview edited for clarity.) When we look at the impact of the tariff stack that’s going on, and there are multiple tariffs that have been applied so far, we’re concerned about the rise in the input costs to the suppliers of all sizes, the vehicle manufacturers across Detroit and all of Michigan. The second thing we’re concerned about is how these costs stack up. The overall selling price of a new vehicle, which is already at a near record, is $49,000 a year. So any impact on that selling price, we’re concerned about what that does to market demand. It has a negative impact if that demand is not strong. And we really would like to see the USMCA trade agreement reopened, as is called for in 2026. But we hope that the president will continue to evaluate goods going between our three countries.

Quinn Klinefelter, WDET News: The president has argued that these tariffs are a way to try to force, in effect, manufacturing back to the U.S. Do you see that as a possibility if these tariffs continue forward, or do you think they’re going to have some counterproductive effect?

GS: No one would argue, and we certainly wouldn’t, that increasing manufacturing in Detroit and Michigan in the United States is a bad thing. No one would argue that improving our border security against illegal drugs and illegal immigration is a bad thing. However, it takes significant time to make these changes, years, not months, in the case of moving assembly plants. So that’s one thing. The second thing is we have to remain globally competitive and we have a supply chain that already works between our three countries. Does it need to be improved? Yes, that’s why reopening and renegotiating the USMCA would be a good way to go. So there are some concerns, but there are opportunities. And yes, eventually over time, if those decisions are made, we could see increased production in the United States, which would not be a bad thing at all.

QK: Mexico and Canada and the U.S. have operated essentially like one big country for the auto industry. They regularly have parts going back and forth over the border. Now the president may not only be trying to force more manufacturing to the U.S., but he’s also causing some countries to levy reciprocal tariffs.

GS: In the case of Michigan and Ontario, we operate seamlessly. This is a 120-year-old industry between our two regions, Ontario and Michigan, let alone the whole Great Lakes region and really North America. Unraveling that supply chain is costly, disruptive and will cost jobs on both sides of the border. Again I stress that we would like to see the tool that we have at hand, the USMCA, to be reopened and renegotiated. And out of that can come more manufacturing, but it also can keep a trade block that works intact for the U.S. auto industry to be globally competitive.

QK: Do you see any upside in the near future in regards to these tariffs, whatever happens in the long run?

GS: I’m a pretty positive, upbeat, glass-half-full person. But there’s not a lot of positives and goods we’re seeing today. If I look at the stock market, at companies which are paralyzed and I look at us, really, in a trade war with our friends and neighbors literally across the Detroit River, I’m not seeing a lot positive in the short term. That’s pretty clear today.

QK: You and the president of the Detroit Regional Chamber recently sent a letter to the White House and other lawmakers arguing your point. If it falls on deaf ears, so to speak, what other recourse do you see that the auto industry might have to try to enact some changes to what’s currently in place?

GS: We’re going to keep communicating with the White House, with our congressional delegation. That letter was also sent to all the members, Republican and Democrat, in the Michigan federal delegation to Washington. We work closely with other companies, other organizations, other trade associations, and we’re all in this together to communicate the importance of the industry and its complexity. But if these tariffs continue, the industry is going to have to make some tough, long-term decisions. We’re going to have to help mitigate that and hopefully we don’t see employment loss, we don’t see companies leave, we don’t see companies financially under duress. I stressed before how important it is for Michigan and the entire region, which includes Ontario and our Great Lakes states and North America as a whole, to be globally competitive. We have a Chinese auto industry that did not exist just a few short years ago that is really expanding globally and is really competitive from a cost, quality and design and engineering standpoint. We can’t isolate ourselves from the world and ignore the fact that Chinese industry is growing. We have to be able to compete with it. And unraveling a trade block and supply chain that works very efficiently is not the direction we should be going in. We should be looking at how we can be more competitive?

QK: In your view, what would make it more competitive?

GS: We talk about this every day. Unfortunately, we had to take our eye off the ball a little bit the last couple months. But the industry is looking at how do we make our plants more efficient? How do we make our people more prepared for the digital skills needed? There will be more automation, but that’s not eliminating jobs as much as it is providing new opportunities for good jobs to interact and program and repair and maintain that automation. We have to look at how do we be more competitive with the technologies at hand, including things like AI? That’s what we want to focus on, that’s what we’re going to have to do together as a partnership between government, labor and industry. That’s really what we want to get back to.