UAW President Advocates Tariffs as Essential for Protecting U.S. Jobs

UAW President Shawn Fain supports Trump’s tariffs on Canada and Mexico, stating they are vital in addressing U.S. job losses. He argues that the current trade system is failing, attributing job declines to NAFTA. The tariffs, while not a complete solution, are seen as necessary. An analysis suggests tariffs could significantly raise vehicle prices, notably impacting consumers.

In a recent interview on ABC News’ “This Week,” United Auto Workers (UAW) President Shawn Fain defended President Donald Trump’s tariffs on Canada and Mexico. Fain expressed that the United States is facing a crisis with its job market and emphasized that current trade systems are “broken.” He believes that while tariffs are not a complete solution, they play a critical role in alleviating job losses that have persisted over the past three decades.

Fain attributed the decline in U.S. jobs to the North American Free Trade Act (NAFTA) and claimed it resulted in millions of job losses. He noted that these tariffs aim to “stop the bleeding” of jobs, particularly in the automotive sector. The tariffs are expected to continue affecting the industry, notably with Trump delaying a 25% tariff on auto imports from Canada and Mexico until April 2.

The intertwined nature of the North American auto industry means that increased tariffs could significantly elevate production costs for automakers and consumer prices. Tariffs are essentially taxes on imported goods, and many auto parts frequently cross borders during production, leading to multiple tariff impositions.

An analysis by the Anderson Economic Group projected that a 25% tariff could raise the cost of vehicles substantially. Crossover utility vehicles could see a price increase of at least $4,000, pickup trucks by $8,000, and large SUVs by $9,000. Moreover, electric vehicles (EVs) may experience the steepest rise in prices, potentially exceeding $12,000 due to these tariffs.

In summary, UAW President Shawn Fain firmly supports President Trump’s tariffs, viewing them as a necessary step to address the job losses affecting the U.S. automotive industry. While he acknowledges that tariffs are not the ultimate solution, he emphasizes their importance in halting the decline of American jobs. The implementation of these tariffs could lead to significant price increases for various types of vehicles, thus impacting consumers directly. The broader implications of these trade policies remain to be seen as the automotive landscape continues to evolve.

Original Source: www.foxbusiness.com