Across Metro Detroit, hundreds of General Motors and Stellantis auto workers have been temporarily laid off this year.
The layoff announcements came soon after the Trump administration slapped 25% tariffs on all automobile imports with a partial exemption for vehicles manufactured under the United States-Mexico-Canada Agreement.
President Trump has said this rate could go up for Canada. The 25% tariffs are set to also apply to auto parts starting May 3.
Some of the layoffs so far this year have been unrelated to tariffs, but tariffs could lead to long-term issues for the industry, resulting in increased costs for imported parts, higher prices for consumers and the potential for reduced demand, impacting overall industry stability.
While Trump says auto tariffs will shift production of cars and car parts back to the U.S., experts warn this could take years (if it’s even possible at all).
“The automakers are in a serious predicament,” Patrick Anderson, president of Michigan-based think tank Anderson Economic Group, CNN. “They’re going to have to make tough decisions about what production to continue, what not to make … We expect implementation of these tariffs to affect jobs across the United States.”
