Kamala’s former top ally has gone MAGA.
In a recent interview, the president of the United Auto Workers (UAW), Shawn Fain, weighed in on President Trump’s tariffs on Canada and Mexico, offering strong support for the measures. Fain defended the tariffs, which have been met with retaliation from both neighboring countries and sparked concerns of a potential trade war.
According to Fain, the United States is currently facing a “crisis” when it comes to trade, with the global trade system “broken” and leaving American workers in a precarious position. While acknowledging that tariffs are not the ultimate solution, he argued that they are essential in halting the “hemorrhaging” of American jobs that has been ongoing for decades. Fain placed much of the blame on the North American Free Trade Agreement (NAFTA), which he claimed cost millions of jobs, pushing industries like manufacturing out of the U.S. Trump’s renegotiation of the trade deal, resulting in the USMCA, was hailed by Fain as a necessary step in addressing these issues.
Trump’s decision to delay the 25% tariffs on auto imports from Canada and Mexico until April 2 has raised questions about the impact on the automotive industry, as tariffs on vehicles and auto parts could significantly increase costs for both manufacturers and consumers. The auto supply chain across North America, especially under NAFTA and the USMCA, is deeply interconnected, with parts frequently crossing the U.S.-Canada-Mexico border multiple times during production. This could lead to tariffs being applied several times during the manufacturing process, adding up to substantial price increases.
According to a study by the Anderson Economic Group, the imposition of a 25% tariff would lead to price hikes across various vehicle types. For instance, the cost of crossover utility vehicles could rise by at least $4,000, while pickup trucks might see an increase of $8,000, and large SUVs could see a jump of $9,000. Electric vehicles would face the largest price hikes, with increases topping $12,000.
For Republicans, these tariffs represent a tough stance on trade, seeking to protect American workers and industries from unfair foreign competition. However, it’s important to consider the potential fallout for consumers and the broader economy as these policies are implemented. While the intention is to restore jobs and manufacturing to the U.S., the long-term effects may require careful management to avoid significant economic disruption.
