The United Auto Workers union is throwing its support behind President Donald Trump’s sweeping new tariffs, saying they are a necessary tool to reverse decades of what it calls “anti-worker trade deals.”
But the endorsement comes as industry leaders and economists warn that tariffs could deal a serious blow to the American auto sector, driving up car prices, disrupting supply chains, and threatening thousands of jobs.
“For 40 years, we’ve seen the devastating effects of the so-called ‘free trade’ on the working class,” the UAW said in a statement Wednesday. “Corporations have been driving a non-stop race to the bottom by killing good blue-collar jobs in America to go exploit some poor worker in another country by paying poverty wages. Tariffs are a powerful tool in the toolbox for undoing the injustice of anti-worker trade deals.”
The UAW added, “We are glad to see an American president take aggressive action on ending the free trade disaster that has dropped like a bomb on the working class.”
The statement was somewhat of a shock, not only because economists are warning that Trump’s trade wars will hurt the domestic auto industry, but also because the UAW endorsed Democrat Kamala Harris for president in August 2024
Trump’s latest tariffs, which took effect Tuesday, include a 25% tax on imports from Canada and Mexico, both of which are key players in the interconnected auto industry. A separate round of tariffs doubled duties on Chinese goods to 20%.
The measures have already triggered a wave of retaliatory tariffs from Canada, Mexico, and China, as well as a global stock market downturn.
Economists and industry analysts warn that these tariffs could significantly increase the cost of vehicles produced in the U.S., with Kelley Blue Book estimating price hikes of up to $10,000 for some full-size trucks, the Associated Press reports. Automakers rely on parts that cross the U.S.-Mexico-Canada border multiple times during productions, meaning the new tariffs will repeatedly add costs at each stage.
Ford CEO Jim Farley recently warned that “so far what we’re seeing is a lot of cost and a lot of chaos,” while General Motors CEO Mary Barra said her company is scrambling to “mitigate” the impact of the tariffs. Some analysts suggest that the disruption could push down auto sales in the U.S. by more than 10%, a loss that could lead to layoffs.
Yet the UAW, which has long criticized free trade agreements for driving manufacturing jobs overseas, sees the tariffs as leverage to force corporations to reinvest in American workers.
“There’s been a lot of talk of these tariffs ‘disrupting’ the economy,” the UAW said. “But if corporate America chooses to price-gouge the American consumer or attack the American worker because they don’t want to pay their fair share, corporate America bears the blame for that decision.”
The UAW said it’s in “active negotiations” with the Trump administration to shape the auto tariffs set to take effect in April. It remains unclear what specific policies the union is advocating for, but the statement called for “serious action” to “incentivize companies to change their behavior.”
Trump courted blue-collar workers ahead of his 2024 election victory, and they are seen as the president’s biggest supporters.
