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Major automakers are pushing back against the Trump administration’s proposal to impose tariffs on factory robots and industrial machinery, warning that such measures would drive up vehicle costs and disrupt U.S. manufacturing.
The Alliance for Automotive Innovation — representing leading carmakers such as General Motors, Toyota, Volkswagen, and Hyundai — urged the government to reconsider the tariffs following a recent national security probe by the Commerce Department. The group emphasized that higher equipment costs would raise production expenses, delay manufacturing timelines, and ultimately increase prices for American consumers.
According to the Alliance, about 40% of all robotics and industrial machinery installations in the U.S. in 2024 were in automotive facilities. The group recommended that any new tariffs exclude robots used in domestic vehicle production to prevent harming the industry’s competitiveness.
Tesla, not a member of the Alliance, echoed similar concerns. The company warned that tariffs could “undermine investments, stall new factories, or delay upgrades to existing ones,” threatening growth in U.S. manufacturing.
Several foreign governments, including China, Canada, Japan, Switzerland, and members of the European Union, also submitted comments opposing the tariffs. Business groups such as the National Retail Federation and the U.S. Chamber of Commerce joined the opposition, noting that tariffs on machinery could ripple across multiple industries, from retail logistics to semiconductor manufacturing.
The Chamber of Commerce highlighted that some specialized equipment, including machinery used in advanced semiconductor production, is only manufactured overseas. Restricting access to such technology could “undermine the very domestic semiconductor manufacturing capacity the administration seeks to build.”
The White House has yet to comment on the issue, as industry and trade groups continue urging the administration to avoid measures that could stifle innovation, raise costs, and weaken the U.S. manufacturing sector.
