Donald Trump targeted autoworkers in key swing states. He urged them to remove their union president, basing his appeal on inaccurate claims during his acceptance speech for the Republican presidential nomination. Speaking in Milwaukee, Trump accused the United Auto Workers (UAW) union of allowing Chinese automakers to build large factories in Mexico and shipping cars to the US tax-free. Industry experts have refuted these claims.
Jeff Schuster, vice president of automotive research at Global Data, confirmed no Chinese auto assembly plants are currently under construction in Mexico. While companies like BYD and Chery might plan future setups in Mexico, none exist at present.
The UAW, led by President Shawn Fain, responded forcefully. On social media platform X, the union called Trump a “scab” and accused him of favoring billionaires over workers. Fain criticized Trump for his inaction during the closure of a General Motors factory in Lordstown, Ohio, and during a GM strike. Fain argued that Trump seeks to benefit wealthy auto executives, reduce corporate taxes for his affluent associates, and suppress autoworkers’ demands for better conditions.
Trump promised to eliminate what he termed the Biden administration’s “electric vehicle mandate” on his first day if re-elected. He proposed reallocating EV tax credits to infrastructure projects, claiming this would rescue the US auto industry from “complete obliteration.” Notably, current EPA standards do not mandate automakers to sell electric vehicles.
President Joe Biden has imposed tariffs on Chinese imports, including electric vehicles. The UAW endorsed Biden’s re-election bid in January after his support for striking General Motors workers. The union secured major wage increases last fall following targeted strikes at Detroit automakers.
Recognizing the critical role of autoworkers in Michigan, Trump and running mate JD Vance plan a rally in Grand Rapids. This marks Trump’s fourth campaign visit to Michigan since mid-March and his first since officially becoming the Republican nominee. Trump invited Chinese automakers to build factories in the US or face steep tariffs, potentially doubling or tripling, making their cars unsellable in America.
Contrary to Trump’s assertion, the auto industry remains robust. Since Biden’s inauguration in January 2021, employment in car and parts manufacturing has grown by 13.8%, surpassing 1 million jobs according to the Labor Department. Detroit automakers General Motors, Ford, and Stellantis reported combined annual profits of $35.5 billion last year.
The EPA projects that most gasoline vehicles will phase out by 2055. Electric vehicles (EVs) currently represent 7.1% of total US new vehicle sales for the first half of this year, slightly down from 7.6% last year. Despite this decrease, EV sales are rising; 597,958 electric vehicles were sold from January through June this year, a 6.8% increase from the same period last year.
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