{"id":217422,"date":"2025-05-01T20:02:36","date_gmt":"2025-05-01T20:02:36","guid":{"rendered":"https:\/\/peraltafinancing.com\/activist\/six-auto-groups-lobby-trump-warning-about-layoffs-and-bankruptcies\/"},"modified":"2025-05-01T20:02:36","modified_gmt":"2025-05-01T20:02:36","slug":"six-auto-groups-lobby-trump-warning-about-layoffs-and-bankruptcies","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=217422","title":{"rendered":"Six Auto Groups Lobby Trump Warning About Layoffs and Bankruptcies"},"content":{"rendered":" \r\n<br><div>\n\n                                        \n\n\n<p><strong><em>In a rare, unified message, auto groups warn Trump about tariffs.<\/em><\/strong><\/p>\n\n\n\n<p>CNBC reports\u00a0<a href=\"https:\/\/www.cnbc.com\/2025\/04\/22\/auto-groups-lobby-trump-administration-against-parts-tariffs.html?utm_source=news.dealershipguy.com&amp;utm_medium=referral&amp;utm_campaign=auto-lobbying-giants-unite-as-industry-prepares-for-more-tariffs-on-may-3\" target=\"_blank\" rel=\"noreferrer noopener\">Auto groups lobby Trump administration against parts tariffs<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Six of the top policy groups representing the U.S. automotive industry are uncharacteristically joining forces to lobby the Trump administration against 25% tariffs on auto parts that are set to take effect May 3.<\/li>\n\n\n\n<li>The group \u2013 representing franchised dealers, suppliers and nearly all major automakers \u2013 say the upcoming levies could jeopardize U.S. automotive production.<\/li>\n\n\n\n<li>The letter is addressed to U.S. Treasury Secretary Scott Bessent, U.S. Department of Commerce Secretary Howard Lutnick and U.S. Trade Representative Ambassador Jamieson Greer.<\/li>\n<\/ul>\n\n\n\n<p>Yahoo!News reports\u00a0<a href=\"https:\/\/www.yahoo.com\/news\/auto-industry-tells-trump-tariffs-221108768.html\" target=\"_blank\" rel=\"noreferrer noopener\">Auto industry tells Trump that tariffs on car parts will mean \u2018layoffs and bankruptcy\u2019<\/a><\/p><div class=\"g g-1\"><div class=\"g-single a-16\"><a class=\"gofollow\" data-track=\"MTYsMSwxLDYw\" href=\"https:\/\/courses.livefree.academy\/a\/2147989502\/NoWDgfiB\" target=\"_blank\"><img loading=\"lazy\" width=\"850\" height=\"500\" decoding=\"async\" src=\"https:\/\/www.activistpost.com\/wp-content\/uploads\/2025\/02\/Trinity-Banner-850-x-500-Button-min-1.jpg\"\/><\/a><\/div><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cTariffs on auto parts will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive and less predictable,\u201d said the letter.<\/p>\n\n\n\n<p>\u201cMost auto suppliers are not capitalized for an abrupt\u00a0tariff-induced disruption. Many are already in distress and will face production stoppages, layoffs and bankruptcy,\u201d the letter added, noting \u201c<em>it only takes the failure of one supplier to lead to a shutdown of an automaker\u2019s production line.<\/em>\u201c<\/p>\n\n\n\n<p>An analysis by the Center for Automotive Research published earlier this month found Trump\u2019s 25%\u00a0tariffs on automotive imports, implemented on April 3,\u00a0will escalate costs\u00a0for U.S. automakers by about $108 billion in 2025.<\/p>\n<\/blockquote>\n\n\n\n<p><strong>Trump vs Auto Industry<\/strong><\/p>\n\n\n\n<p>On March 26, 2025 I noted\u00a0<strong><a href=\"https:\/\/mishtalk.com\/economics\/news-flash-trump-says-car-companies-will-be-thrilled-with-tariffs\/\" target=\"_blank\" rel=\"noreferrer noopener\">News Flash: Trump Says \u201cCar Companies Will Be Thrilled With Tariffs\u201d<\/a><\/strong><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>The word of the hour is \u201cthrilled\u201d by 25 percent tariffs on autos starting April 2.<\/p>\n\n\n\n<p><em>Trump batted away concerns over higher prices for cars or effects on U.S. automakers,\u00a0<strong>saying that car companies with factories in the U.S. would be \u201cthrilled\u201d with the tariffs<\/strong><\/em>.<\/p>\n<\/blockquote>\n\n\n\n<p><strong>Consumers Will Be Thrilled Too<\/strong><\/p>\n\n\n\n<p>Trump largely won the election on the economy, especially inflation.<\/p>\n\n\n\n<p>One of the reasons Trump one is his promise of\u00a0<s>lower<\/s>\u00a0<em>higher<\/em>\u00a0inflation. So consumers will likely be as thrilled as Ford, GM, Cox, Trump, and me when prices rise by $6,000.<\/p>\n\n\n\n<p>Is paying $6,000 more per car combined with potential massive hemorrhaging on supply chains thrilling or what?<\/p>\n\n\n\n<p>But oh, don\u2019t worry about that either because Trump says tariffs won\u2019t increase prices.<\/p>\n\n\n\n<p><strong>More Thrills Coming May 2<\/strong><\/p>\n\n\n\n<p>On May 2, \u201cde minimis\u201d exemption on shipments of goods worth less than $800 are set to expire on May 2.<\/p>\n\n\n\n<p>CNN Reports\u00a0<a href=\"https:\/\/finance.yahoo.com\/news\/shein-temu-just-started-raising-135923278.html\" target=\"_blank\" rel=\"noreferrer noopener\">Shein and Temu just started raising prices ahead of new tariffs<\/a><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cCheap goods\u201d sold on Temu and Shein aren\u2019t as cheap as they were 24 hours ago.<\/p>\n\n\n\n<p>On Friday, the two companies raised prices on many goods in advance of new tariffs set to take effect next week. The companies had informed shoppers of the coming price hikes last week.<\/p>\n\n\n\n<p>American customers of Temu and Shein, which source most of their products from China, have largely been able to avoid paying tariffs due to an exemption on shipments of goods worth less than $800. That exemption, known as \u201cde minimis,\u201d is expiring on May 2, the result of an executive order President Donald Trump signed earlier this month.<\/p>\n\n\n\n<p>Businesses will either have to pay a 120% tariff or a flat $100 fee per postal item. Come June 1, the flat fee will increase to $200.<\/p>\n\n\n\n<p>Both sites encouraged customers to make purchases prior to April 25 to avoid paying higher prices. However, it\u2019s unclear if buyers will avoid paying the 120% tariffs if their orders arrive after May 2.<\/p>\n<\/blockquote>\n\n\n\n<p>Who won\u2019t be thrilled with that?<\/p>\n\n\n\n<p>On April 23,\u00a0<a href=\"https:\/\/www.cnbc.com\/2025\/04\/23\/trump-considering-exemption-for-automakers-on-some-tariffs-white-house-says.html\" target=\"_blank\" rel=\"noreferrer noopener\">CNBC reported Trump considering exemption for automakers on some tariffs, White House says<\/a><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>President Donald Trump is considering exemptions for automakers from some tariffs announced by his administration, the White House confirmed Wednesday to CNBC\u2019s Eamon Javers.<\/p>\n\n\n\n<p>The confirmation follows a\u00a0<a href=\"https:\/\/www.ft.com\/content\/fa0f6749-729e-41ca-917b-7b534041f6f8\" target=\"_blank\" rel=\"noreferrer noopener\">Financial Times report<\/a>\u00a0that Trump is planning to exempt auto parts from tariffs on imports from China that Trump imposed to counter fentanyl production as well as levies on steel and aluminum.<\/p>\n\n\n\n<p>The exemption would be separate from 25% tariffs on imported vehicles as well as 25% tariffs on imported auto parts that is scheduled to take effect by May 3, the FT reported.<\/p>\n\n\n\n<p>Shares of many automakers and suppliers were marginally higher Wednesday in after-hours trading.<\/p>\n\n\n\n<p>Separately on Wednesday, Trump reportedly said a 25% tariff\u00a0<a href=\"https:\/\/www.cnbc.com\/2025\/04\/09\/canada-auto-tariffs-trump-usmca.html\" target=\"_blank\" rel=\"noreferrer noopener\">imposed on cars imported from Canada to the U.S.<\/a>\u00a0could go up.<\/p>\n\n\n\n<p>\u201cWhen I put tariffs on Canada \u2014 they\u2019re paying 25% \u2014 but that could go up, in terms of cars,\u201d Trump told reporters in the Oval Office. \u201cAll we\u2019re doing is we\u2019re saying, \u2018We don\u2019t want your cars, in all due respect. We want, really, to make our own cars.\u2019\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>So it appears Trump may grant relief on parts from China but not Canada.<\/p>\n\n\n\n<p><strong>Progress on Deals<\/strong><\/p>\n\n\n\n<p>Please note\u00a0<strong><a href=\"https:\/\/mishtalk.com\/economics\/trump-tells-time-magazine-he-has-made-200-deals-already-refused-to-name-any\/\" target=\"_blank\" rel=\"noreferrer noopener\">Trump Tells Time Magazine He Has Made 200 Deals Already, Refused to Name Any<\/a><\/strong><\/p>\n\n\n\n<p>200 deals would mean deals with every country, territory, and regional association in the world.<\/p>\n\n\n\n<p>Check out this incredible interview with Time. I provide the key quotes.<\/p>\n\n\n\n<p>This post originated on\u00a0<a href=\"https:\/\/mishtalk.com\/economics\/six-auto-groups-lobby-trump-warning-about-layoffs-and-bankruptcies\/\" target=\"_blank\" rel=\"noreferrer noopener\">MishTalk.Com<\/a><\/p>\n\n\n\n<p>Thanks for Tuning In!<\/p>\n\n\n\n<p><strong>Mish<\/strong><\/p>\n\n            \n        <\/div>\r\n<br>\r\n","protected":false},"excerpt":{"rendered":"<p>In a rare, unified message, auto groups warn Trump about tariffs. CNBC reports\u00a0Auto groups lobby Trump administration against parts tariffs Six of the top policy groups representing the U.S. automotive industry are uncharacteristically joining forces to lobby the Trump administration against 25% tariffs on auto parts that are set to take effect May 3. The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":217423,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12022],"tags":[1213,82053,3724,30059,61511,1175,18529],"dealstore":[],"offerexpiration":[],"class_list":["post-217422","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-activist","tag-auto","tag-bankruptcies","tag-groups","tag-layoffs","tag-lobby","tag-trump","tag-warning"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Six Auto Groups Lobby Trump Warning About Layoffs and Bankruptcies - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=217422\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Six Auto Groups Lobby Trump Warning About Layoffs and Bankruptcies - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"In a rare, unified message, auto groups warn Trump about tariffs. 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CNBC reports\u00a0Auto groups lobby Trump administration against parts tariffs Six of the top policy groups representing the U.S. automotive industry are uncharacteristically joining forces to lobby the Trump administration against 25% tariffs on auto parts that are set to take effect May 3. 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