UAW President Shawn Fain supports Trump’s tariffs on Canada and Mexico, stating they are essential to mitigate job losses caused by free trade agreements like NAFTA. While he acknowledges tariffs are not a complete solution, he believes they are crucial in addressing the current crisis. Price increases on vehicles due to tariffs could be substantial, potentially exceeding $12,000 for electric vehicles.
In a recent interview, UAW President Shawn Fain advocated for President Donald Trump’s tariffs on imports from Canada and Mexico, claiming they are necessary to ‘stop the bleeding’ of American jobs. Fain criticized free trade agreements, including the USMCA, which succeeded the NAFTA, arguing that these agreements are detrimental to U.S. employment and led to significant job losses over the past three decades. He emphasized that while tariffs are not a complete solution, they are crucial in addressing the current trade crisis.
Fain characterized the trade environment in the United States as being in “crisis mode,” asserting that the international trade system is “broken.” He insisted that tariffs are a fundamental step necessary to remedy a situation he described as a “triage situation” for American workers. Furthermore, he attributed job losses to NAFTA and asserted that tariffs represent a critical move in reversing these trends, though he acknowledged that these measures could provoke retaliation from trading partners.
President Trump has postponed the imposition of 25% tariffs on auto imports from Canada and Mexico, delaying them until April 2. Upon implementation, these tariffs will match those imposed by other countries on U.S. exports, potentially escalating trade tensions. The intertwined nature of the North American automotive industry complicates the situation, as tariffs could significantly increase production costs across the region.
Tariffs, being taxes on imported goods, are projected to raise costs for automakers and consumers alike. Analysis by the Anderson Economic Group highlights the severe financial impact these tariffs could have, predicting that prices for various vehicles will soar significantly. For example, crossover utility vehicles could see price increases of $4,000, while pickup trucks may rise by $8,000, and large SUVs by $9,000. Electric vehicles are expected to be affected the most, with potential increases exceeding $12,000.
UAW President Shawn Fain’s insistence on the necessity of tariffs reflects growing concerns about job losses linked to free trade agreements and the current trade system’s inefficacy. He argues that while tariffs may provoke retaliation, they are pivotal in addressing the long-standing issues plaguing the U.S. job market. However, these tariffs could lead to significant price increases for automotive consumers and further complicate trade relations with Canada and Mexico.
Original Source: www.foxbusiness.com
