The recent announcement of auto tariffs by President Trump has sparked discussions on their potential impact, particularly within the American auto industry. UAW President Shawn Fain, in a conversation with CNN’s Kaitlan Collins, addressed the challenges and expectations surrounding these tariffs, especially considering the one-month delay before their implementation on April 2nd.
UAW President Shawn Fain
According to the UAW website, the union has long advocated for fair trade policies that prioritize American jobs and manufacturing. The organization emphasizes the need for government action to prevent outsourcing and strengthen domestic production, aligning with Fain’s stance on the importance of these tariffs.
The Feasibility of Shifting Production
When asked whether automakers would shift production within the one-month period before tariffs take effect, Fain dismissed the idea, stating that it is logistically impossible to shut down a plant and move it in such a short time. However, he emphasized that auto companies are making crucial production decisions right now.
For example, Stellantis has already laid off 2,000 workers at the Warren Truck Plant in Michigan, shifting overflow production of the Ram truck to Mexico. According to Fain, this decision could still be reversed if the company chose to prioritize American jobs. Similarly, John Deere is considering moving a factory to Mexico, while MC Truck workers in Pennsylvania face uncertainty as the company mulls shifting new truck production out of the state.
Fain highlighted that these tariffs should serve as a motivator for companies to prioritize American workers rather than seek cheaper labor overseas.
The Impact of Uncertainty on Companies
The auto industry, like many others, has been dealing with uncertainty regarding tariffs and trade policies. While the Big Three automakers were initially told that tariffs would be implemented, they were later granted an exception. Other industries, such as those dealing with groceries, oil, and fertilizers, also received exemptions. This back-and-forth has left companies scrambling to prepare for possible changes.
Despite this uncertainty, Fain argued that businesses have had sufficient time to plan. He pointed out that ever since the election, discussions about trade policy changes have been ongoing. Companies, therefore, should not be caught off guard.
Worker and Consumer Concerns
One major concern raised about the tariffs is their potential to increase vehicle prices. Critics argue that additional tariffs will force companies to pass costs onto consumers. However, Fain rejected this notion, stating that price hikes are a choice made by corporations, not a necessity.
Drawing a parallel to the UAW’s recent negotiations with the Big Three, Fain noted that automakers claimed the new labor contracts would devastate their businesses. Instead, the contracts resulted in fairer wages for workers while automakers continued making billions in profits and distributing dividends to shareholders.
Fain also pointed to the long-term damage caused by trade agreements such as NAFTA, which led to the closure of approximately 90,000 factories. He stressed that American workers should not be forced to bear the burden of fixing a trade system that has already cost them jobs and stability.
Fain’s Surprising Support for Trump’s Tariffs
One of the more unexpected aspects of the discussion was Fain’s support for Trump’s tariff policies. Despite being a vocal supporter of Vice President Harris during the election and previously referring to Trump as a “scab,” Fain acknowledged that the issue of broken trade laws transcends political affiliations.
While he remains critical of many of Trump’s policies, Fain emphasized that his priority is advocating for American workers. The UAW is prepared to work with the administration to ensure that trade policies benefit the working class, which has suffered due to decades of unfair trade practices.
The implementation of auto tariffs remains a contentious issue, with significant consequences for workers, consumers, and manufacturers. While Fain’s stance may seem surprising to some, his primary focus remains on protecting American jobs and ensuring fair trade policies. Whether these tariffs will effectively encourage domestic production or lead to unintended economic consequences remains to be seen, but one thing is clear: the future of the American auto industry is at a critical crossroads.
