UAW President Shawn Fain supports Trump’s tariffs on Canada and Mexico, arguing they are essential to stop job losses in the US. He cites the failures of previous trade agreements like NAFTA as contributors to the crisis. The tariffs may result in significant increases in vehicle prices, raising concerns for consumers and the auto industry.
Shawn Fain, the President of the United Auto Workers (UAW), recently defended President Trump’s tariffs on Canada and Mexico during an interview on ABC News’ “This Week.” Fain argued that these tariffs, although controversial and leading to retaliatory measures from neighboring countries, are essential to address the crisis in American job security and the flaws in the international trade system.
Fain stated, “we are in a crisis mode in this country” and noted that the tariffs are intended to “stop the bleeding from the hemorrhaging of jobs in America for the last 33 years.” He attributed significant job losses to the North American Free Trade Act (NAFTA), which has been replaced by the U.S.-Mexico-Canada Agreement (USMCA) negotiated by Trump. Furthermore, he acknowledged that while tariffs are not a complete solution, they play a critical role in addressing the current job crisis.
Currently, President Trump has postponed implementing 25% tariffs on auto imports from Canada and Mexico until April 2. This delay aligns with a strategy that is expected to impose reciprocal tariffs that would match the rates imposed by foreign trading partners. The intertwined nature of the North American auto industry complicates matters, as many auto parts cross borders multiple times during production.
Imposing tariffs on these parts could result in significant price increases for consumers. According to an analysis by the Anderson Economic Group, the tariffs could lead to substantial increases in vehicle prices, with crossover utility vehicles potentially rising by at least $4,000, pickup trucks by $8,000, and large SUVs by $9,000. Electric vehicles may experience the steepest hike, with prices rising upwards of $12,000.
UAW President Shawn Fain has articulated a strong defense for President Trump’s tariffs on Canada and Mexico, citing a pressing crisis in American jobs and the breakdown of the international trade system. These tariffs, although fraught with controversy and the potential for retaliatory measures, are viewed as crucial steps to curb job losses incurred over decades. As the auto industry remains deeply integrated across North America, the implications of these tariffs may lead to significant increases in vehicle costs for consumers, raising concerns about the broader effects on the economy.
Original Source: www.foxbusiness.com
