A group representing nearly all major automakers on Wednesday called on President Donald Trump’s administration not to impose tariffs on factory robots and machinery.
The Automotive Innovation Alliance, which represents General Motors (GM), Toyota, Volkswagen, Hyundai and nearly all other major automakers, called on the administration not to impose new tariffs after the Commerce Department launched a national security investigation last month. The government can use these types of investigations to impose tariffs.
“Increasing the cost of equipment at existing facilities will increase overall production costs for automakers, could cause production delays, and could result in vehicle shortages and higher prices for American consumers at a time when new vehicle prices are already at historic levels,” the group wrote in comments made public Wednesday.
Recommended for you: GM and Ford thank Trump for imposing tariffs on trucks from Mexico and Canada
The automotive group cited a study showing that approximately 40% of all robotics and industrial machinery installations in the US in 2024 will be in automotive production facilities. Automakers said that if the administration imposes tariffs, it should exempt robots used in U.S. production.
Tesla, which is not part of the alliance, separately asked the Trump administration not to impose tariffs, saying they could “undermine investments, delay construction of new factories or improvements to existing ones.”
The White House did not immediately respond to a request for comment. Several foreign governments, including China, Canada, Japan, Switzerland and the European Union, submitted comments opposing the tariffs.
Additionally, the National Retail Federation warned that tariffs and shortages will raise costs and consumer prices, adding that its members are increasingly using robots in stores, warehouses and distribution centers.
The US Chamber of Commerce said some critical machinery is only produced overseas, including extreme ultraviolet lithography equipment used in semiconductor manufacturing.
The tariffs could “undermine the domestic semiconductor manufacturing capacity that the administration seeks to build,” the business group said.
With information from Reuters.
Follow the information on the economy and finances in our specialized section