Alabama automakers call for trade stability as they face tariffs, high prices and EV struggles

Automakers are navigating a turbulent period defined by cooling electric vehicle interest, rising sticker prices, and the pressure of global trade tariffs. With the automotive sector serving as a vital engine for Alabama’s economy, industry leaders gathered at Birmingham’s Innovation Depot this past Monday to address these growing challenges.

Trade Stability at the Forefront

A primary focus of the roundtable, which included state and federal officials alongside representatives from Alabama's major automakers, was the ongoing renegotiation of the US-Mexico-Canada trade agreement. As the state ranks second in the nation for auto exports, the cross-border flow of goods to Canada and Mexico is essential to local operations.

Jennifer Safavian, CEO of the trade organization Autos Driving America, emphasized that manufacturers are clamoring for consistency. Because vehicle components frequently cross borders multiple times during production, last year’s 25% import tariffs on vehicles and 50% duties on steel, aluminum, and copper created significant financial strain. The industry absorbed an estimated $35 billion in tariff-related costs last year, a situation Safavian described as unsustainable.

"It takes five to seven years to plan future models and investments," Safavian noted. "That makes it very important to have that certainty. This is already the most stringent trade agreement. They would like to make sure it’s not made even more stringent, and that they’re given time to adjust to any changes."

Protecting the Alabama Auto Industry

Ron Davis, president of the Alabama Automotive Manufacturers Association, echoed the call for minimal disruption. "They don’t want to do any radical changes to it," Davis said. "They want stability and predictability in any agreement that affects our industry. The automotive industry is very important to Alabama."

The Rising Challenge from China

Global competition is also heating up as Chinese manufacturers accelerate their design-to-production timelines, outpacing many traditional rivals. The industry remains wary of the competitive speed demonstrated by Chinese firms, with Toyota CEO Koji Sato warning, "Unless things change, we will not survive," as noted in reports regarding concerns over Chinese automakers grabbing market share.

Furthermore, new legislative proposals designed to curb Chinese influence could have unintended consequences for domestic players. Reports indicate that bipartisan efforts targeting Chinese trade could potentially impact manufacturers like Mercedes-Benz. While stakeholders recognize the need for a competitive landscape, Davis remained clear on the goal for the domestic sector: "We don’t want China to come in and take over our industry."