How Trump’s Tariffs Are Actually Hitting Detroit’s Auto Industry

Automotive Industry Impact of Tariffs - AlphaUSA, an automotive fastener manufacturer, faces an existential threat due to tariffs, potentially leading to closure if costs cannot be passed on or relief is not obtained [2] - The US has lost tens of thousands of manufacturing jobs this year, despite Trump's promises of a manufacturing boom due to tariffs [4] - Tariffs have moved the needle and leveled the playing field, bringing some product back to the US [5] - The auto industry has lost just over 15,000 jobs this year through November [11] Company Financials & Operations - AlphaUSA has paid approximately $13 million (130万) in tariffs through November, with current monthly payments between $225,000 and $250,000 [9] - A part that used to cost a dime (10 cents) now costs 15 cents due to tariffs, representing a 50% increase [6] - Tariffs impact AlphaUSA's ability to expand its capital base and limits potential future growth [25] Union Perspective & Investment - UAW (United Auto Workers) has long advocated for auto tariffs, which they believe have led to new investments and job creation at facilities like the Stellantis Warren Truck Assembly Plant [16] - Stellantis reversed course after Trump's automotive tariff announcement, bringing back a shift of workers and expanding production [13][14] - New investments at Eric's plant are expected to generate a shift to production and create roughly 900 jobs [17] Policy & Implementation - Trump's tariffs are imposed under Section 232, allowing duties to protect national security, and the International Emergency Economic Powers Act (IEEPA) for national emergencies like the trade deficit [7][8] - Some of Trump's tariffs are at risk after the Supreme Court appeared skeptical of his authority to impose broad levies [24] - There is a desire to see all manufacturing brought back to the US, emphasizing the need to "build it here" if it's sold here [21]