Economy

‘There is some uncertainty,’ GOP lawmaker says of auto tariffs

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(NewsNation) — U.S. Rep. Marlin Stutzman, R-Ind., said President Donald Trump’s 25% tariffs on auto imports carry a degree of uncertainty but believes it will be worth it in the long run.

“There’s some uncertainty,” Stutzman told NewsNation. “But my hope is that these other countries will realize that they need us as a partner. But we’re also going to look out for the American people and the America-first agenda that President Trump has laid out is really important for us.”

The tariffs, which the White House expects to raise $100 billion in revenue annually, could be complicated as even U.S. automakers source their components from around the world. The tax hike starting in April means automakers could face higher costs and lower sales, though Trump argues that the tariffs will lead to more factories opening in the United States and the end of what he judges to be a “ridiculous” supply chain in which auto parts and finished vehicles are manufactured across the U.S., Canada and Mexico.


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“It’s just going to take some time,” said Stutzman. “And I would just say that these other countries really should be careful on how they respond to President Trump’s tariff discussion and really start partnering with us rather than being adversarial.”

Trump has long said that tariffs against auto imports would be a defining policy of his presidency, betting that the costs created by the taxes would cause more production to relocate to the United States while helping narrow the budget deficit. But U.S. and foreign automakers have plants around the world to accommodate global sales while maintaining competitive prices — and it could take years for companies to design, build and open the new factories that Trump is promising.

“We knew it was going to be a little rocky, but I think that in the long run, there’s going to be deregulation coming from the Trump administration out of the bureaucracies in Washington,” said Stutzman. “There’s going to be tax policy that’s going to be beneficial, and, of course, there’s going to be energy policy that’s going to be very positive for the United States. So there will be some offsets.”