UAW President Shawn Fain endorsed Trump’s tariffs on Canada and Mexico, arguing they are vital to stop job losses in the U.S. He criticized NAFTA for contributing to unemployment and emphasized the need for effective trade reforms. The impending tariffs could raise car prices significantly, with increases up to $12,000 for electric vehicles.
Shawn Fain, the president of the United Auto Workers (UAW), defended President Trump’s tariffs on Canada and Mexico during an ABC News interview, asserting that these measures aim to alleviate the ongoing job loss crisis in the U.S. Fain stated, “We are in a crisis mode in this country,” emphasizing that the current international trade system is ineffective and stating that tariffs, while not a complete solution, play a crucial role in addressing the challenges in U.S. employment.
Fain criticized the North American Free Trade Agreement (NAFTA) for contributing to significant job losses over the past decades, claiming that the U.S. has experienced a “hemorrhage of jobs” due to unfavorable trade policies. He asserted that tariffs are part of a strategy to “stop the bleeding” of jobs, highlighting the need for reforms in trade agreements such as the USMCA, which replaced NAFTA and was negotiated by Trump in 2019.
In anticipation of increased tariffs, Trump postponed the enactment of a 25% tariff on auto imports from Canada and Mexico until April 2. This aligns with a planned reciprocal tariff system, where U.S. tariffs would rise to offset those imposed by trading partners. The interconnected nature of the North American auto industry, facilitated by NAFTA and the USMCA, complicates the potential impact of tariffs, as parts often cross borders numerous times in the production process.
Tariffs raise the cost of imported goods, which could significantly affect automotive manufacturing and consumer prices. An analysis from the Anderson Economic Group predicted that a 25% tariff on autos could substantially increase vehicle prices. For instance, crossover utility vehicles might see price hikes of at least $4,000, while pickup trucks could cost an additional $8,000, and large SUVs might rise by $9,000. The most affected would be electric vehicles, with potential price increases exceeding $12,000.
In summary, UAW President Shawn Fain supports President Trump’s tariffs as a necessary response to the job crisis resulting from previous trade agreements like NAFTA. While tariffs are not the ultimate solution, they are seen as essential in addressing the job losses in America. The projected increases in automobile prices due to these tariffs raise concerns about their broader economic impact.
Original Source: www.foxbusiness.com
