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A lot of US autoworkers like the idea of auto tariffs. But some are being laid off as a result

A lot of US autoworkers like the idea of auto tariffs. But some are being laid off as a result

CNN
Monday, April 07, 2025 01:14:34 PM UTC

The United Auto Workers union, and many of its members, have publicly agreed with President Donald Trump’s decision to slap 25% tariffs on all imported cars. But about 900 UAW members will start paying the price for those tariffs starting Monday.

The United Auto Workers union, and many of its members, have publicly agreed with President Donald Trump’s decision to slap 25% tariffs on all imported cars. But about 900 UAW members will start paying the price for those tariffs starting Monday. That’s how many hourly workers at five US Stellantis plants will be laid off for two or three weeks because their jobs producing powertrains and stampings for plants in Canada and Mexico have been temporarily idled due to the tariffs. The layoffs could be a sign of things to come. Since the North American Free Trade Agreement (NAFTA) went into effect 31 years ago, the auto industry has operated as if the US borders with Canada and Mexico did not exist. Components moved freely and frequently between the three countries as they assembled cars, as automakers built millions of vehicles destined for US dealerships at Mexican and Canadian plants. But those assembly plants north and south of the border were often supplied by American factories. Shutting production at those plants will mean the plants that produce those parts are also at risk. Three of the Stellantis plants starting layoffs are in Kokomo, Indiana, an island of auto factories amidst a sea of farm fields in the northern part of the state. There are no cars assembled in Kokomo, but there about 5,000 workers building transmissions and engines there, supplying auto plants to all three countries.

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