Correction: An earlier version of this article reported that the layoffs at Factory ZERO and the Warren Truck Assembly Plant were tariff related. This was a typo, it should have read not tariff related. It has since been corrected.
United Auto Workers President Shawn Fain is speaking out about the impact of tariffs on the auto industry.
Fain gave an address to the union on Thursday night with his message about the overall state of the industry that's rooted in Detroit.
He took to Facebook Live to acknowledge what UAW members may be feeling now that 25% tariffs are in effect on auto industry imports and tariffs on everyday items are in flux. Fain made it clear the UAW supports the targeted tariffs and reforming free trade.
"I know there’s a lot of uncertainty about what this moment holds for the working class," Fain said. "I want to take some time to dig into what’s going on with trade and these tariffs."
Fain addressed the 400,000 UAW members amid the tariff turmoil throughout the country. Along with the 25% tariffs on auto imports, there is a 145% tariff on China imports and tariffs on dozens of other countries are at 10% for now.
"It doesn’t mean we support reckless random tariffs. I don’t believe that’s the answer to all this. But there is a reason for tariffs. And it’s also a mistake to defend the status quo. Especially when it comes to free trade,' he said.
Fain said the tariffs on the auto industry could bring thousands of jobs back to the U.S. if all plants here ran at capacity, but two of the Big Three are doing the opposite.
Starting April 14, GM is temporarily laying off 200 employees at Factory ZERO and Stellantis is laying off more than 1,000 workers at the Warren Truck Assembly Plant. But both automakers said these layoffs are not due to tariffs.
Stellantis did notify 900 additional employees they're being laid off, pointing to "new automotive sector tariffs now in effect," according to an email from the COO for the Americas.
“RAM has got really sky-high inventory that it's been trying to work down, but as we saw with the first quarter sales at Stellantis, and their sales were off tremendously, even though the, the rest of the market was up pretty well," Autoline Automotive Analyst John McElroy said.
The Center for Automotive Research found the 25% auto tariffs will increase costs by $108 billion for U.S. automakers, with $42 billion for the Big 3 alone. Imported parts will increase costs by $5,000 per vehicle for the Big 3, and costs go up by around $8,000, according to the study.
"There’s flexibility in the price. They don’t need to pass the cost of auto tariffs onto consumers because they’re already making plenty of money," Fain said.
