President Donald Trump sits down with Maria Bartiromo on ‘Sunday Morning Futures.’
The president of the United Auto Workers (UAW) union said in an interview Sunday that President Donald Trump’s tariffs on Canada and Mexico
UAW President Shawn Fain appeared on ABC News’ “This Week” and defended the controversial tariffs, which have prompted retaliation by Canada and Mexico against U.S. exports and sparked fears of a broadening trade war.
“We are in a crisis mode in this country,” Fain said. He added that the international trade system is “broken” and that the U.S. is in a “triage situation” while explaining that tariffs “aren’t the end solution” but are “a huge factor in fixing this problem.”
“Tariffs are an attempt to stop the bleeding from the hemorrhaging of jobs in America for the last 33 years,” Fain said as he sought to blame the North American Free Trade Act (NAFTA) for causing “millions of jobs” to leave the U.S. NAFTA was replaced by the U.S.-Mexico-Canada Agreement (USMCA), which Trump negotiated in 2019.
CAR PRICES COULD RISE $12,000 DUE TO TRUMP’S LATEST TARIFFS
UAW President Shawn Fain defended President Donald Trump’s tariffs. (Photo by Scott Olson/Getty Images / Getty Images)
Trump delayed 25% tariffs on auto imports from Canada and Mexico for another month until April 2. At that time, Trump’s reciprocal tariff regime is also expected to take effect and raise U.S. tariffs to match those that foreign trading partners impose on U.S. exports.
Under NAFTA and the USMCA, the North American auto industry is deeply intertwined between the U.S., Canada and Mexico as automakers have distributed production facilities across the three countries to promote efficiency.
LATE CAR PAYMENTS RISE TO HIGHEST LEVEL IN OVER 30 YEARS
The North American auto industry has facilities in the U.S., Mexico and Canada that could be impacted by tariffs. (Ty Wright/Bloomberg via Getty Images / Getty Images)
Tariffs are taxes imposed on imported goods. As applied to the North American auto supply chain, tariffs could raise costs significantly for automakers as well as prices paid by consumers.
Some auto parts cross the U.S. border multiple times during the production process – which would incur a tariff each time it crosses if Trump’s tariffs are implemented.
An analysis by the Anderson Economic Group found that the 25% auto tariffs would cause prices to rise by thousands of dollars.
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Crossover utility vehicles would see prices rise at least $4,000, while pickup trucks would rise $8,000 and large SUVs $9,000. Electric vehicles (EVs) would see the biggest cost increases, rising upward of $12,000.
