WASHINGTON, April 9 (Reuters) - President Donald Trump
on Wednesday paused for 90 days many tariffs but is not halting
25% tariffs on automotive imports and looming tariffs on auto
parts, drawing criticism from Michigan business and auto groups.
The Detroit Regional Chamber and MichiganAuto called on
Trump to protect the automotive industry's complex international
supply chain framework from harmful fragmentation that weakens
its global competitiveness.
"Michigan's signature industry and the supply chains and
employees that sustain it will continue to endure the
uncertainty and disruption of these fluctuating trade policies,"
they said in a statement after last month warning the tariffs
would result in significant pain for autoworkers.
The groups noted that Trump was also leaving in place 25%
tariffs on aluminum and steel that are also impacting
automakers.
Trump said Wednesday he is considering granting some U.S.
companies an exemption from his tariff program but it is unclear
if he is considering automakers.
"There are some that have been hard," Trump told reporters
when asked about companies requesting exemptions. "There are
some that, by the nature of the company, get hit a little bit
harder. We'll take a look at that."
Michigan Governor Gretchen Whitmer, a Democrat, on Wednesday
in Washington called for exempting autos from tariffs.
"Let's carve out autos and energy, both of which are
critical to manufacturers and directly impact people's wallets,"
she said.
Earlier this week, a Detroit-area automotive advisory firm
forecast U.S. and Canada auto sales could decline by 1.8 million
vehicles this year and be stagnant over the next decade if the
global trade war escalates,
Trump's 25% automotive import tariffs went into effect April
3. Vehicles made in Mexico and Canada face the levy, but
automakers compliant with the terms of the U.S.-Mexico-Canada
Agreement can deduct the value of U.S. content.
New 25% tariffs on auto parts are to take effect by May 3.
Chrysler-parent Stellantis ( STLA ) said last week it is
temporarily shutting down production at two plants in Mexico and
in Canada, affecting five U.S. facilities that are connected to
them, including temporarily laying off 900 U.S. workers.
Other automakers are limiting some U.S. vehicle imports to
reduce the impact of the tariffs.
(Reporting by David Shepardson; Editing by Chris Reese and
Lincoln Feast.)