New Trump tariffs threaten ruby red state's economy as Republican rep. remains silent

U.S. House members in two of Alabama’s three districts with major automotive plants Thursday criticized President Donald Trump’s plans to impose 25% tariffs on automobiles and automobile parts.

The tariffs could hit Alabama’s car plants hard. Most of Alabama’s leading imports in 2023 — including oil, engines, transmissions and ignition sets – went toward building automobiles.

U.S. Rep. Terri Sewell, D-Selma, whose district includes the Mercedes-Benz plant in Vance, wrote on social media Thursday that she has not supported tariffs on automobile parts since Trump proposed them in his first term in 2019.

In 2019, Sewell and 160 other lawmakers sent a letter to the National Economic Council Director opposing the tariffs citing increased prices on consumers and the possibility of loss of jobs.

“We agreed that they would raise prices, hurt consumers and manufacturers, and weaken our economy,” she wrote on Thursday. “It’s still true today.”

U.S. Rep. Shomari Figures, D-Mobile, whose district includes the Hyundai plant outside Montgomery, echoed the concern of increased prices and lost jobs in a statement Thursday.

“The reality is that the companies are not going to absorb those expenses; they’re going to pass them off to people who purchase vehicles in my district, in the state, and across the country,” he said.

Figures also noted that the tariffs are another policy by the Trump administration that will hurt everyday Americans.

“These tariffs are yet another example of this administration acting without considering how it will impact everyday people, and most certainly not considering how it will affect people in industries in the state of Alabama,” he said.

Messages seeking comment from U.S. Rep. Mike Rogers, R-Saks, whose district includes a Honda plant outside Lincoln, were left Thursday morning.

Trump signed the executive order Wednesday. The tariffs will go into effect on April 2.

Representatives of the state’s automobile industry were much more cautious about the tariffs on Thursday.

Jennifer Safavian, CEO of Auto Drive America (ADA), said the tariffs will definitely lead to higher vehicle prices across the country in a phone interview Thursday. The organization represents five automotive manufacturers in Alabama: Honda in Lincoln, Hyundai in Montgomery, Mazda Toyota in Huntsville and two Mercedes-Benz U.S. International plants outside Tuscaloosa.

“No question, there ‘ill be higher costs because of the tariffs, which will in turn increase prices for vehicles,” Safavian said.

Safavian said the company had a consulting firm model what the tariffs will impact. Under the 25% tariffs on imports from Canada and Mexico and previously announced 10% tariffs on all imported goods, Safavian said the price of vehicles would increase about 8%, or $4,000. The model was done considering the entire automotive industry, not just Alabama.

According to ADA’s 2023 economic impact report, Alabama auto manufacturers have 19 models that are built with parts from 42 countries and territories. Statewide, Alabama auto manufacturers employ 90,000 people. Safavian said those jobs could be at risk due to a projected decrease in sales and production.

“If there’s less production, whether it’s because there’s less sales in the United States or there’s fewer sales abroad, I don’t know what that ultimately means, but that’s why it’s a concern that it certainly could threaten jobs,” she said.

Edith Müller-Callsen, manager of corporate affairs communications for Mercedes-Benz, wrote in a statement that the company employs 163,000 jobs across its manufacturing plants and dealerships across the country. She said the company is still assessing the effect of the tariffs.

“As a global company, we rely on constructive cooperation and policies that promote mutually beneficial trade across international markets,” she said. “Mercedes-Benz supports free and fair trade that underpins prosperity, growth and innovation.”

Requests for comment from Honda and Hyundai were sent Thursday.

Ron Davis, the president of the Alabama Automotive Manufacturers Association, said Thursday he was “not free to speak on this topic.”

Messages seeking comment from the Business Council of Alabama were left Thursday morning.

Alabama Reflector is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Alabama Reflector maintains editorial independence. Contact Editor Brian Lyman for questions: info@alabamareflector.com.