FCA Urges Trump: Target Tariffs on Cars with No U.S. Content

Fiat Chrysler Automobiles (FCA), the parent company of Jeep, has urged the Trump administration to target tariffs on cars with no U.S. content, rather than imposing them on all imported vehicles. The company's chairman, John Elkann, made the plea during a speech at the Artificial Intelligence Action Summit in Paris on February 10, 2025.

Elkann argued that focusing tariffs on cars with no U.S. content would help protect American jobs and the domestic automotive industry. He suggested that such a move would also encourage foreign automakers to increase their investment in the U.S. and create more jobs for American workers.

The Trump administration has been considering imposing tariffs on imported vehicles and auto parts, citing national security concerns. However, the proposal has been met with strong opposition from the automotive industry, which argues that such tariffs would increase costs for consumers and harm the industry's competitiveness.

FCA is not the only automaker to express concern about the potential impact of tariffs on the automotive industry. General Motors, Ford, and other major automakers have also warned that tariffs could lead to higher prices for consumers, job losses, and a decline in investment in the U.S.

In response to the industry's concerns, the Trump administration has been exploring alternative ways to address its national security concerns. One option being considered is a quota system that would limit the number of imported vehicles that can be sold in the U.S. However, this proposal has also been met with criticism from the industry, which argues that it would be difficult to implement and could lead to unintended consequences.

The future of the Trump administration's trade policies remains uncertain, and the automotive industry continues to monitor the situation closely. As the administration considers its next steps, automakers like FCA are urging it to take a more targeted approach to tariffs that protects American jobs and the domestic industry, while minimizing the impact on consumers and the industry's competitiveness.