Tip Sheets

Auto tariffs ‘boon’ to Tesla, threat to unionized workers and ‘Big Three’

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Jeff Tyson

President Trump has announced 25 percent tariffs on cars and car parts imported into the U.S., which will go into effect next week.


Ian Greer

Research professor, School of Industrial and Labor Relations

Ian Greer is a research professor at Cornell University’s School of Industrial and Labor Relations (ILR) who studies the auto industry, the electric vehicle transition, and policy impacts on jobs and labor rights. He says the tariffs will ultimately benefit Tesla, while threatening unionized workers as well as the “Big Three” automakers: Ford, General Motors and Stellantis.

Greer says: 

“The Trump administration’s announced automotive tariffs may seem a blessing for U.S. autoworkers, and many trade unionists welcome the end of free trade. But these tariffs are risky for unionized auto workers. For union members in Canada and the many U.S. workers who make parts for vehicles assembled in Canada, tariffs threaten jobs by increasing the price of the end product. 

“In the electric vehicle segment, tariffs are a boon to fiercely anti-union Tesla, which will benefit from the disarray of competitors (including the Big Three) who need time to rethink production strategies and retool factories. Any new automotive jobs will be overwhelmingly nonunion, and Republicans in state and federal governments will work to keep them that way.”

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