UAW President Shawn Fain supports President Trump’s tariffs on Canada and Mexico, arguing they are necessary to halt job losses in the U.S. He criticizes past trade agreements, stating that tariffs are essential in addressing a broken trade system. However, concerns over increased vehicle prices due to these tariffs persist, with forecasts indicating price hikes across various vehicle types.
Shawn Fain, the President of the United Auto Workers (UAW), recently expressed support for President Donald Trump’s tariffs imposed on Canada and Mexico, asserting they aim to address job losses in the United States. During his appearance on ABC News’ “This Week,” Fain described the current situation as one of crisis, claiming the international trade framework is broken and highlighting the tariffs as a crucial factor in attempting to rectify the ongoing job losses.
Fain attributed the loss of millions of jobs over the past 33 years to the North American Free Trade Agreement (NAFTA), which has transitioned to the U.S.-Mexico-Canada Agreement (USMCA) negotiated by Trump in 2019. He stated, “Tariffs are an attempt to stop the bleeding from the hemorrhaging of jobs in America for the last 33 years.” Nonetheless, he acknowledged that while tariffs are significant, they are not the ultimate solution.
The president has temporarily postponed the 25% tariffs on auto imports from Canada and Mexico until April 2, whereupon a reciprocal tariff system will be implemented. Fain noted the intertwining of the North American auto industry, emphasizing that tariffs on imports could drastically raise costs for automakers and consumers alike, given the supply chain’s complexity.
An analysis conducted by the Anderson Economic Group anticipates that the auto tariffs could result in substantial price increases across various vehicle types. For instance, crossover utility vehicles may see a price increment of at least $4,000, while pickup trucks and large SUVs could increase by $8,000 and $9,000, respectively. The most affected vehicles would be electric vehicles, which may experience a steep rise of $12,000.
In summary, UAW President Shawn Fain endorses President Trump’s tariffs on Canada and Mexico as a means to combat job losses in the U.S., criticizing past trade agreements such as NAFTA. While acknowledging that tariffs are a temporary measure in addressing systemic issues in the trade system, he warns of potential price increases for consumers due to the implementation of these tariffs. The broader implications on the auto industry highlight the intricate relationship between U.S., Canadian, and Mexican production and trade. Overall, while tariffs aim to stabilize domestic employment, they may lead to significant increases in vehicle pricing and consumer costs, raising questions about their long-term efficacy and impact on the automotive market.
Original Source: www.foxbusiness.com
