automotive

Mass Layoffs Lurk In Automotive Industry Due To Impact Of Donald Trump's Import Tariff Policy

The decision of the President of the United States (US), Donald Trump to impose a 25% tariff on imported cars, is considered to create a lot of unemployment due to layoffs in the automotive industry. 

Donald Trump's policy is said to be a strategy to protect US car manufacturers while maintaining domestic jobs, and forcing car manufacturers to produce their vehicles in America. 

However, Trump's policy has sparked strong reactions from various neighboring countries and also domestically. 

The latest rejection came from the Detroit Regional Chamber of Commerce and MichiganAuto, two organizations that focus on the progress of the automotive industry. 

They officially urged President Trump to lift the tariffs, citing the serious risks facing Michigan's automotive sector due to disruptions to the global supply chain. 

"Michigan's leading industry and the supply chain and employees who support it will continue to bear the uncertainty and disruption of this fluctuating trade policy. With the worst impact being mass layoffs," they said in a statement, quoted from Carscoops, Saturday (April 12, 2025). 

"This is a loss for automotive workers because it could reduce total car sales this year by up to 2 million units," the statement continued. 

On the same day, Michigan Governor Gretchen Whitmer said that cars should be exempt from tariffs. 

"Let's exclude autos and energy, both of which are critical to manufacturers and have a direct impact on people's wallets," Whitmer said. 

While some automakers, such as Hyundai, which is investing $21 billion to build in the U.S., and Honda, which plans to start building its next Civic in the U.S., have opted to follow Trump's plan. 

Others, including Audi and Jaguar Land Rover, have stopped shipping new cars to the United States, at least until things calm down. 

Stellantis, meanwhile, has temporarily halted production at two plants in Mexico and Canada. 

Automakers Lay Off Jobs 

Stellantis now plans to temporarily lay off a combined 330 employees at its Warren Stamping Plant and Sterling Stamping Plant. 

The layoffs at the two Stellantis plants are part of a total of 900 workers that Stellantis is laying off at five plants in the Midwest. 

UAW Regional 869 President Romaine McKinney said workers are afraid of what will happen. UAW Local 869 represents about 800 workers at the Warren Stamping Plant. 

Tag: Automotive Industr Donald Trump Import Tariff United States