US auto groups send letter to Besent, Rubio, Greer, Lutnick

Six leading U.S. automotive industry groups have jointly urged federal officials to reconsider impending 25% tariffs on imported auto parts, warning of severe risks to domestic production and employment. The letter, dated April 21, 2025, was addressed to Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, U.S. Trade Representative Jamieson Greer, and Senator Marco Rubio, emphasizing that the tariffs—scheduled to take effect by May 3, 2025—could destabilize an already vulnerable supply chain.

The groups, representing automakers, suppliers, and dealers, highlighted that many auto suppliers are financially strained and unprepared for abrupt cost increases. They cited potential production halts, layoffs, and bankruptcies, with cascading effects across the industry. "It only takes the failure of one supplier to lead to a shutdown of an automaker's production line," the letter stated. The coalition, which includes the Alliance for Automotive Innovation and the National Automobile Dealers Association, represents a sector supporting 10 million U.S. jobs and contributing $1.2 trillion annually to the economy.

Industry analysts project the tariffs could trigger $100 billion in added costs, reduced vehicle sales, and higher prices for consumers. While President Trump has hinted at potential relief—similar to recent measures for semiconductors and electronics— the letter underscores the need for a phased transition to avoid disruptions. Lutnick separately proposed tax credits for automakers assembling vehicles in the U.S., aiming to offset reliance on imported parts.

The joint action reflects rare industry unity, as major automakers like Tesla and Rivian were not part of the coalition. The outcome of these efforts remains uncertain as the administration weighs economic and manufacturing priorities.