United Auto Workers (UAW) President Shawn Fain has recently aligned with President Donald Trump, supporting the administration’s proposed 25% tariffs on vehicles and auto parts imported from Canada and Mexico. While the intention to protect American jobs is commendable, this approach dangerously oversimplifies the global automotive economy and risks backfiring on the very workers it claims to help.
The modern automotive supply chain is intricately global. Components cross borders multiple times before final assembly. According to MarketWatch, even a single crankshaft might be manufactured in Mexico, machined in the United States, and then shipped back for final assembly. Disrupting this system with steep tariffs will inevitably increase production costs, and those costs will be passed on to consumers the most.
Experts estimate that vehicle prices could rise by $4,000 to $12,000 per vehicle, depending on the extent of the supply chain disruption. San Antonio Express-News warns this would place new cars out of reach for millions of American families already burdened by high inflation, interest rates, and insurance premiums. According to Edmunds, the average car note is already over $730 a month.
Meanwhile, the Trump administration has not outlined a comprehensive plan to fund or execute a rapid reshoring of manufacturing. Yes, there are headlines like Hyundai’s recent commitment to a $20 billion investment in U.S. operations, including a new steel plant in Louisiana (New York Post), but those projects take years to come online. Workers laid off due to supply chain disruptions may retire or transition to other industries long before those jobs become available again.
In addition, President Trump’s other economic policies may worsen the federal deficit, not shrink it. The Congressional Budget Office (CBO) projects that extending Trump’s 2017 tax cuts could add $4.6 trillion to the federal deficit over the next decade. Meanwhile, organizations like the OECD have warned that sweeping tariffs could slow global growth and increase inflation, making an already tough economy even worse.
So, while Fain and Trump talk tough about American jobs, their policies risk creating more economic pain than prosperity. Tariffs may shift where cars are built, but they won’t guarantee jobs. In fact, auto dealers are already seeing consumer interest fall by as much as 50% due to uncertainty and looming price hikes. That’s not job creation—it’s contraction.
A smarter path forward involves modernizing trade agreements, investing in workforce training, and creating incentives for innovation in both electric and combustion-powered vehicles. We should be preparing American workers for the future—not selling them nostalgic dreams and calling it policy.
The American auto industry is strong because it’s competitive. The way to protect it is through strategy—not slogans.