As you know, the U.S. tariff situation is changing so quickly that it’s challenging to stay current, but let’s try to make sense of the situation concerning UAW President Shawn Fain. He previously raved about tariffs for the auto industry and called them “a powerful tool” while adding, “We look forward to working with the White House to shape the auto tariffs in April.”
Is the UAW truly helping to “shape” these tariffs? It’s hard to tell, but on April 9, Trump abruptly issued a 90-day pause on many of his “Liberation Day” tariffs and left intact the 25% on automotive imports with tariffs on auto parts still to come. This prompted the Detroit Regional Chamber and MichiganAuto to criticize the whiplash: “Michigan’s signature industry and the supply chains and employees that sustain it will continue to endure the uncertainty and disruption of these fluctuating trade policies.”
That’s only the beginning of the awkward tariff outcomes for Fain while automakers grapple with resultantly severe financial stressors:
- Stellantis temporarily laid off 900 workers from across five U.S. plants and then idled a Mexico plant and counterpart in Canada, potentially putting another 7,000 auto workers out of jobs. In response, Fain pointed fingers: “Stellantis continues to play games with workers’ lives. As we’ve shown time and again, they’ve got the money… These layoffs are a completely unnecessary choice.”
- Analysts believe that 20% of vehicle price hikes from these tariffs are realistic consequences, and Trump declared to NBC News that he “couldn’t care less if they raise prices because people are going to start buying American-made cars.” So, which company has the most American-made cars right now? That would be Elon Musk’s Tesla, which is not unionized and certainly not so with the UAW, although we’re not sure if this reality has sunk in yet with Fain.
- Fain has since categorized Trump’s blanket tariff announcements as “reckless,” but he still remains in favor of auto industry tariffs and insists that they will bring manufacturing jobs back to the U.S. A few problems could exist with his theory: (1) Factories clearly cannot be built overnight; (2) It’s likely that any newly built plants will be largely automated, a notion that Fain refuses to believe is an issue.
To make matters more embarrassing for Fain, backlash is building within the UAW with a local president pointing out, “When the economy starts tanking, the first thing people don’t buy are cars.” A progressive publication also gathered worker responses including the following: “If the union really was for the workers it wouldn’t be supporting Trump’s tariffs;” “I don’t believe anything Fain says. He got elected and now he has got his;” and “We need to do something about Fain; he is running amok.”
Still, Fain has found himself steadfastly embracing those tariffs while also awkwardly lambasting several other labor-involved policies from Trump. It’s also that time of year when Fain’s $229,514 gross salary in 2024 is being reported. Surely, he’s not turning away a paycheck while his members get laid off due to the tariffs that he’s cheerleading. You can bet on that.
