By Luke Ramseth, The Detroit News

Two major Stellantis parts plants in Metro Detroit are preparing for a combined 330 temporary layoffs scheduled to begin on Monday and last several weeks.

The staffing cutbacks — about 170 at the Warren Stamping plant and 160 at the Sterling Stamping plant — are tied to the automaker’s decision to idle two  assembly factories in Canada and Mexico impacted by President Donald Trump’s new 25% tariffs on imported vehicles. Stellantis said last week that it expected about 900 workers in the United States to be laid off due to the new tariffs, with additional cuts coming at transmission and parts plants in Kokomo, Ind.

Both Metro Detroit stamping facilities are especially impacted by the Windsor Assembly plant closing because both supply parts for the Chrysler minivans and Dodge Charger electric muscle cars made there, said Romaine McKinney III, president of United Auto Workers Local 869, which represents about 800 workers at the Warren Stamping plant. McKinney said the plant also is affected by the nearby Warren Truck Assembly plant, which will soon pause production for several weeks due to engine shortages.

With the additional cuts this week, McKinney said more than 260 union members at the Warren Stamping will be temporarily laid off following previous cutbacks.

“They’re terrified,” McKinney said of the members. “They’re in an uproar because they knew it was coming, they could see it coming — but it’s reality now.”

McKinney has mixed feelings about Trump’s tariffs. Right now they are fueling coming layoffs and leading to lower morale among the members. And the tariffs are set to push up prices on various goods, which also won’t be good for UAW members.

Yet he also supports the goal of bringing back manufacturing work to the U.S.— even Warren Stamping has plenty of space where it could rebuild assembly lines and add staff to increase parts output, a projects he estimates might take a year at the soonest.

“It’s just so early in the game,” McKinney said, and it’s unclear how the tariff strategy will all shake out.

Warren Stamping worker Daiquiri Harris said the automaker’s layoffs caught him off guard. He knew job cuts were possible due to tariffs but figured his plant had already seen such deep cuts recently, it wouldn’t be able to reduce its workforce much further. The 47-year-old said he wondered why General Motors Co. and Ford Motor Co. hadn’t yet announced similar cutbacks yet due to tariffs, and whether Stellantis may have been looking to cut back production and staff anyway.

Harris said he’s torn about the White House’s tariff strategy.

“It’s tough, man,” he said. “I know they want to bring the manufacturing back and this is how they propose to do it. But I don’t know. Maybe in the long run, this’ll work out and we’ll all look back at it and be glad it happened. But for right now, it’s not looking good.”

Democratic U.S. Rep. Shri Thanedar of Detroit joined a handful of supporters in front of Stellantis’ Detroit Assembly Complex-Jefferson plant on Friday afternoon to discuss Trump’s tariffs and the automaker’s plans to temporarily trim jobs in response. He argued tariffs can be helpful to the United States if used judiciously and strategically — but the Republican president’s onslaught of new levies on nations, the auto industry and more was instead a “macho, bully approach to dealing with the economy.”

Thanedar acknowledged this approach might work in some instances, scaring certain countries or companies to change their practices. But he said it also appeared set to damage the interconnected auto industry, which he noted sends parts back and forth to be manufactured and assembled between countries.

The congressman also questioned whether Stellantis really needed to idle plants and cut its workforce in response to the new tariffs, a sentiment that has been echoed in recent days by UAW officials.

“These 900 jobs that they are cutting, supposedly a temporary job (cut) … is that really a result of these tariffs or is this where a company is taking advantage of the situation to trim and cut some of the workforce?” Thanedar asked. “If that’s what they are doing, Stellantis should not be doing that.”

Thanedar said he had not discussed the tariff issue with Stellantis. The automaker declined to respond to his comments. But executives have said the company needs to pause production and shipments due to the new 25% tax, and as they seek to work out new levies with the Trump administration.

UAW retiree and former engine plant worker Willie Wyatt, 85, who attended Thanedar’s gathering on Friday, said he watched many good auto jobs leave the Detroit area over the years. But he’s not convinced Trump’s tariffs will bring them back. He said he’s worried the tariffs will just raise prices and lead to more layoffs for the autoworkers that remain.

“Them companies don’t leave and say, ‘I’m gonna build a new plant tomorrow and come back here,'” Wyatt said. “Donald Trump’s term is supposed to end in three or four years from now. It takes you two to three years to build a plant.”

lramseth@detroitnews.com

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By The Associated Press

WASHINGTON (AP) — President Donald Trump declared on Wednesday a 10% baseline tax on imports from all countries and higher tariff rates on dozens of nations that run trade surpluses with the United States, threatening to upend much of the architecture of the global economy and trigger broader trade wars.

Trump held up a chart while speaking at the White House, showing the United States would charge a 34% tax on imports from China, a 20% tax on imports from the European Union, 25% on South Korea, 24% on Japan and 32% on Taiwan.

The president used aggressive rhetoric to describe a global trade system that the United States helped to build after World War II, saying “our country has been looted, pillaged, raped, plundered” by other nations.

Trump declared a national economic emergency to launch the tariffs, expected to produce hundreds of billions in annual revenues. He has promised that factory jobs will return back to the United States as a result of the taxes, but his policies risk a sudden economic slowdown as consumers and businesses could face sharp price hikes on autos, clothes and other goods.

“Taxpayers have been ripped off for more than 50 years,” Trump said in remarks at the White House. “But it is not going to happen anymore.”

Trump was fulfilling a key campaign promise as he imposed what he called “reciprocal” tariffs on trade partners, acting without Congress through the 1977 International Emergency Powers Act in an extraordinary attempt to both break and ultimately reshape America’s trading relationship with the world.

The president’s higher rates would hit foreign entities that sell more goods to the United States than they buy, meaning the tariffs could stay in place for some time as the administration expects other nations to lower their tariffs and other barriers to trade that it says have led to a $1.2 trillion trade imbalance last year.

The tariffs follow similar recent announcements of 25% taxes on auto imports; levies against China, Canada and Mexico; and expanded trade penalties on steel and aluminum. Trump has also imposed tariffs on countries that import oil from Venezuela and he plans separate import taxes on pharmaceutical drugs, lumber, copper and computer chips.

None of the warning signs about a falling stock market or consumer sentiment turning morose have caused the administration to publicly second-guess its strategy, despite the risk of political backlash as voters in last year’s election said they wanted Trump to combat inflation.

Senior administration officials, who insisted on anonymity to preview the new tariffs with reporters ahead of Trump’s speech, said the taxes would raise hundreds of billions of dollars annually in revenues. They said the 10% baseline rate existed to help ensure compliance, while the higher rates were based on the trade deficits run with other nations and then halved to reach the numbers that Trump presented in the Rose Garden.

In a follow-up series of questions by The Associated Press, the White House could not say whether the tariff exemptions on imports worth $800 or less would remain in place, possibly shielding some imports from the new taxes.

Based on the possibility of broad tariffs that have been floated by some White House aides, most outside analyses by banks and think tanks see an economy tarnished by higher prices and stagnating growth.

Trump would be applying these tariffs on his own; he has ways of doing so without congressional approval. That makes it easy for Democratic lawmakers and policymakers to criticize the administration if the uncertainty expressed by businesses and declining consumer sentiment are signs of trouble to come.

Heather Boushey, a member of the Biden White House’s Council of Economic Advisers, noted that the less aggressive tariffs Trump imposed during his first term failed to stir the manufacturing renaissance he promised voters.

“We are not seeing indications of the boom that the president promised,” Boushey said. “It’s a failed strategy.”

Rep. Suzan DelBene, D-Wash., said the tariffs are “part of the chaos and dysfunction” being generated across the Trump administration. The chair of the Democratic Congressional Campaign Committee stressed that Trump should not have the sole authority to raise taxes as he intends without getting lawmakers’ approval, saying that Republicans so far have been “blindly loyal.”

“The president shouldn’t be able to do that,” DelBene said. “This is a massive tax increase on American families, and it’s without a vote in Congress … President Trump promised on the campaign trail that he would lower costs on day one. Now he says he doesn’t care if prices go up — he’s broken his promise.”

Even Republicans who trust Trump’s instincts have acknowledged that the tariffs could disrupt an economy with an otherwise healthy 4.1 % unemployment rate.

“We’ll see how it all develops,” said House Speaker Mike Johnson, R-La. “It may be rocky in the beginning. But I think that this will make sense for Americans and help all Americans.”

Longtime trading partners are preparing their own countermeasures. Canada has imposed some in response to the 25% tariffs that Trump tied to the trafficking of fentanyl. The European Union, in response to the steel and aluminum tariffs, put taxes on 26 billion euros’ worth ($28 billion) of U.S. goods, including on bourbon, which prompted Trump to threaten a 200% tariff on European alcohol.

Many allies feel they have been reluctantly drawn into a confrontation by Trump, who routinely says America’s friends and foes have essentially ripped off the United States with a mix of tariffs and other trade barriers.

The flip side is that Americans also have the incomes to choose to buy designer gowns by French fashion houses and autos from German manufacturers, whereas World Bank data show the EU has lower incomes per capita than the U.S.

“Europe has not started this confrontation,” said European Commission President Ursula von der Leyen. “We do not necessarily want to retaliate but, if it is necessary, we have a strong plan to retaliate and we will use it.”

Italy’s premier, Giorgia Meloni, on Wednesday reiterated her call to avoid an EU-US trade war, saying it would harm both sides and would have “heavy” consequences for her country’s economy.

Because Trump had hyped his tariffs without providing specifics until Wednesday, he provided a deeper sense of uncertainty for the world, a sign that the economic slowdown could possibly extend beyond U.S. borders to other nations that would see one person to blame.

Ray Sparnaay, general manager of JE Fixture & Tool, a Canadian tool and die business that sits across the Detroit River, said the uncertainty has crushed his company’s ability to make plans.

“There’s going to be tariffs implemented. We just don’t know at this point,” he said Monday. “That’s one of the biggest problems we’ve had probably the last — well, since November — is the uncertainty. It’s basically slowed all of our quoting processes, business that we hope to secure has been stalled.”

By David WelchBloomberg

Brittany Humphries and her husband Jon Bassford are what sales people at car dealerships might call motivated buyers. The couple, who live in suburban Maryland outside Washington, DC, moved swiftly to lock in purchases this year to avoid the risk of paying thousands of dollars more once Trump administration policies on electric vehicles and tariffs fully kick in.

The couple’s story presages a buying boom as people rush to get ahead of the 25% tariff hike on imported vehicles that President Donald Trump announced on March 26, which is set to go into effect on April 3.

By the end of February, Humphries, 38, had traded in her 2022 Hyundai Kona crossover for a new $44,000 Acura Integra compact and her 42-year-old husband swapped his Acura MDX SUV for a lease on a $72,000 all-electric ZDX SUV.

Those transactions helped power strong first-quarter new car sales ahead of White House moves to disrupt the auto industry’s status quo.

“We just don’t want to be part of Trump’s game,” Humphries said.

The promised tariffs could jack up sticker prices once current inventories are depleted.

The first indication of a wider upswell in demand will come Tuesday, when major automakers such as General Motors Co. and Toyota Motor Corp. release new car sales data for the latest quarter. Tesla Inc. is expected to detail its global delivery numbers for the period on April 2.

Trump told reporters at a White House briefing on Friday that Americans shouldn’t rush out to buy cars ahead of the tariffs. But that doesn’t appear to be deterring motivated buyers.

“Savvy consumers are likely attempting to get ahead of future uncertainty surrounding auto pricing levels by taking advantage of March deals,” Chris Hopson, principal analyst at S&P Global Mobility, said in a statement. “Downside risks to the auto demand and production environment abound as consumers face potential higher auto prices as a result of expected tariffs.”

Import models – including those shipped from Canada and Mexico – make up about half of overall US sales. And many vehicles made in the US use a lot of imported parts. But it’s unclear exactly how much of a levy will be charged on specific vehicles and also how much of that extra cost – which is estimated to be as much as $12,000 for some models – will be born by consumers. The burden from previous tariff hikes and Covid-era supply chain disruptions was spread out among automakers, parts suppliers and car buyers over a period of years.

Cars already are more expensive than just a few years ago, giving pause even to some affluent buyers. Average new vehicle transaction prices hit $47,373 in February, according to car-shopping website Edmunds. Fear that prices can only go up with Trump’s latest tariffs is driving more people to move up their timeline for buying a new car, said Sam Fiorani, vice president of global vehicle forecasting at market research firm AutoForecast Solutions.

“The idea that cars might be more expensive in April has been all over the news,” he said.

A similar trend boosted car sales in the final quarter of 2024 as buyers rushed to sign paperwork for electric vehicles eligible for tax credits Trump has started to curb. That helped automakers end 2024 on a bullish note, with sales up 2.2% to 15.9 million vehicles for the year, marking the highest level since 2019, according to Wards Intelligence.

Edmunds projects first quarter sales will continue that upward trend, rising 1% to 3.8 million vehicles – the strongest start to the year since 2021. That number likely reflects some sales pulled forward by trade policy concerns, but also reflects healthy overall demand and supply in the market, according to Jessica Caldwell, an analyst at Edmunds. Price hikes and inventory disruptions tied to trade policy may start to weigh on auto sales beginning in April, she said.

“If you’re looking to buy a car in the next, I’d say, month, it wouldn’t be a bad idea to get a car as soon as possible,” Caldwell said in a Bloomberg TV interview.

Most major automakers sell vehicles sourced from multiple countries, with some brands more dependent on foreign-made models than others. Many of the cheapest vehicles are imported, something that could soon put many cars out of reach for entry-level buyers.

Faith Johnson, a 30-year-old dental assistant living in metro Detroit, has been looking to buy a new car because her current vehicle, a used Ford Explorer, is having engine trouble even after $5,000 in repairs. She’s been saving for a down payment on a new car since November, and has about $2,000 in cash saved up so far.

“Things are just super expensive,” said Johnson. “Now you have to come up with even more money because of the tariffs? That is insane.”

Researcher Cox Automotive projects sales growth to continue into the first three months of 2025, with a seasonally-adjusted annualized sales rate of 15.8 million vehicles. Prior to Trump’s tariff announcement, Cox expected 16.3 million vehicles would be sold for the full year. But that may drop once tariffs are imposed.

“It will be a squandered opportunity as we were poised for continuing growth” this year, Jonathan Smoke, Cox Automotive chief economist, said in a March 26 webcast. “Our quarterly survey of dealer sentiment showed positive momentum at the end of 2024.”