Automakers urge Trump not to impose tariffs on factory robots, machinery

WASHINGTON: A group representing nearly all major automakers on Wednesday urged the administration of President Donald Trump not to impose tariffs on factory robots and machinery.

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The Alliance for Automotive Innovation, which represents General Motors GM.N, Toyota 7203.T, Volkswagen VOWG.DE, Hyundai 005380.KS and nearly all other major automakers, urged the administration not to impose new tariffs after the Commerce Department opened a national security probe last month. The government can use such investigations to impose tariffs.

"Increasing the cost of equipment at existing facilities will raise overall production costs for automotive manufacturers, could cause production delays, and may result in vehicle shortages and higher vehicle prices on American consumers at a time when new vehicle prices are already at historic highs," the group wrote in comments made public Wednesday.

The auto group cited a study showing that about 40% of all robotics and industrial machinery installations in the U.S. in 2024 were in automotive production facilities. Automakers said if the administration imposes tariffs, it should exempt robots used in U.S. production.

Tesla TSLA.O, which is not part of the alliance, separately called on the Trump administration not to impose tariffs, saying they could "undermine investments, stall new factories or upgrades 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 filed comments opposing the tariffs.

In addition, tariffs and shortages will drive up costs and consumer prices, warned the National Retail Federation, which added that its members are increasingly using robotics in stores, warehouses and distribution centers.

The U.S. Chamber of Commerce said some critical machinery is only produced abroad, including equipment for extreme ultraviolet lithography used for semiconductor manufacturing. Tariffs could "undermine the very domestic semiconductor manufacturing capacity the administration seeks to build," the business group said.