UAW president says automakers can afford tariffs, shouldn't pass costs on to consumers

DETROIT (FOX 2) - While speaking to union members via livestream Thursday, UAW President Shawn Fain showed some support for tariffs, saying that automakers can afford to absorb the extra costs without passing them on to buyers. 

This comes after President Donald Trump imposed a 25% tariff on imported vehicles.

By the numbers:

According to the Center for Automotive Research, these tariffs are anticipated to cost the Big 3 around $41.9 billion and impact an estimated 6.8 million vehicles produced by Ford, General Motors, and Stellantis.

Industry-wide, the cost is forecasted to be around $107.9 billion, with an impact on  about 17.7 million vehicles.

According to Anderson Economic Group, UAW members could see profit-sharing checks drop by up to $4,000 as a result of the tariffs. 

What they're saying:

Fain said automakers can and should pay for these increased costs.

"The other thing we hear about these auto tariffs, ‘They’ll be too expensive for working people. The automakers can't afford it, so they'll pass those costs on the consumers,'" he said. "And we call that what it is - it's b*******."

He went on to say that automakers make enough money as is.

"They don't need to pass the cost of auto tariffs onto consumers because they're already making plenty of money. And where do those profits go? Wall Street, plain and simple," Fain said. 

Fain also said that he believes tariffs could bring tens of thousands of jobs back to the U.S.

Additionally, Fain said that agreeing with Trump administration actions doesn't mean the union is aligning with him.

"Politics are just like contract negotiations - you win what you have the power to fight for," he said. "We're negotiating with the Trump administration. Our approach to President Trump is the same that our approach was to President Biden."

Instead, he said the UAW is and has been working against "the free trade disaster."

"It doesn't mean that we support random reckless tariffs," Fain said. "But there also is a reason for tariffs."

Watch FOX 2 News Live