Here's what Elon Musk, the UAW and industry figures are saying about Trump's auto tariffs

Thibault Spirlet

Thu, Mar 27, 2025, 8:51 AM 3 min read

• Trump's 25% auto tariff shook markets, hitting stocks and sparking fears of a global trade war.

• UAW backed the move, while Tesla and foreign automakers warned of higher costs and job risks.

• Japan, the EU, and South Korea threatened retaliation and emergency trade measures.

President Donald Trump finally announced 25% tariffs on auto imports on Wednesday, which he said would push automakers to expand production in the US.

Here's what industry figures and politicians are saying about the decision.

The United Auto Workers union praised the move it said would help reverse more than 30 years of free trade policies that had devastated the US auto industry.

"Ending the race to the bottom in the auto industry starts with fixing our broken trade deals, and the Trump administration has made history with today's actions," UAW president Shawn Fain said in a statement.

The union expects the tariffs will push automakers, including the Big Three of GM, Ford and Stellantis as well as foreign companies such as Volkswagen, to invest more in the US and potentially create thousands of jobs.

The union argued that underutilized plants could quickly scale up production, reversing thousands of layoffs they attributed to the outsourcing to Mexico.

While Tesla produces its cars in the US, CEO Elon Musk said on X the tariffs would still have a "significant" impact on his EV company meaning it was "not unscathed here."

"To be clear, this will affect the price of parts in Tesla cars that come from other countries," he posted on Wednesday, adding that the cost impact is "not trivial."

The tariffs come as Tesla faces challenges including US registrations falling by 11% in January and European sales sliding 42% in January and February.

Japan, the second-largest exporter of vehicles to the US after Mexico, warned of a strong response. Prime Minister Shigeru Ishiba said "every option" was under consideration, and his government called the tariffs "extremely regrettable" and a threat to bilateral relations.

South Korea's industry minister, Ahn Duk-Geun, said Korean automakers faced "considerable difficulties" and would announce emergency measures.

European automakers also sounded the alarm. The European Automobile Manufacturers' Association warned that tariffs would hurt both global automakers and US domestic manufacturing, as European manufacturers export 50% to 60% of the cars they make in the US.