Last-Minute Lobbying by US Automakers
US car manufacturers are urgently lobbying against the Trump administration’s impending tariffs on medium- and heavy-duty trucks, leading to a conflict among Detroit’s established automakers.
Stellantis’ Push for Exemptions
Stellantis NV has recently urged the administration to consider modifying or waiving a proposed 25% tariff, which could adversely affect their medium-duty Ram pickups produced in Mexico, as per sources familiar with the situation.
Opposition from GM and Ford
General Motors Co. and Ford Motor Co. have advised Trump administration officials to reject Stellantis’ request. Ford contended that allowing Stellantis an exemption would give them a financial edge over US-manufactured trucks that include imported parts already facing tariffs.
Potential Ripple Effects
GM communicated to officials that if Stellantis were to receive relief, other automakers would likely demand similar exemptions, including for GM’s Mexican-built models, according to insiders.
Delayed Decision on Tariffs
This lobbying effort coincides with the administration missing its deadline for implementing tariffs, previously promised by President Trump to take effect by October 1. Last week, Trump announced a 25% duty on heavy-duty trucks amid a prolonged investigation into these vehicle categories.
Ongoing Investigations and National Security
The US Commerce Department initiated a probe in April regarding heavy truck imports under Section 232 of the Trade Expansion Act, enabling the imposition of import taxes on goods seen as essential to national security. The investigation flagged a limited number of foreign suppliers dominating US imports due to “predatory trade practices.”
Industry Implications and Future Tariffs
While supporters believe these tariffs could boost domestic manufacturing, a duty on medium-duty trucks could introduce taxes on a new vehicle category produced by US automakers, who already face tariffs on imported parts and passenger vehicles. In the previous year, Stellantis produced over 206,000 medium-duty pickups in Mexico, while Ford and GM manufactured nearly 400,000 and 266,000 medium-duty trucks in the US, respectively.
