American Prospect co-founder Robert Kuttner said President Donald Trump is winning his merciless war on the U.S. auto industry, but Republicans are getting mowed down in the trenches.
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“The U.S. auto industry was in big trouble even before President Trump imposed 50 percent tariffs on the profitable vehicles that the Big Three automakers produce in Ontario,” said Kuttner, referring to Trump’s crashing negotiation with the nation’s closest economic ally. “Auto manufacturers make several trucks in Canada, including GM’s Chevy Silverado and Ford’s F-350 and F-450. These will now have to carry far higher sticker prices.”
Trump doesn’t seem to realize that few “American” vehicles are fully built in the U.S., said Kuttner, with supply chains for U.S. auto producers bouncing back and forth across the border, and difficult to disentangle. This means in addition to heavy trucks killing their sales with 50 percent tariffs, the Big Three make several other cars and trucks in Canada, including the Dodge Charger, Chrysler Pacifica, and Chrysler Voyager.
“Under Trump’s retaliation, tariffs on cars and light trucks, which were ‘only’ 25 percent, will rise to 50 percent on January 1 as well. Automakers will also pay 50 percent tariffs on Canadian steel and aluminum.
Meanwhile, Trump has punched the U.S. auto industry back into 1985 while the rest of the world marches ahead with EV production.
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“Based on his alliance with the oil industry, early in his second term, Trump killed several Biden clean-energy initiatives,” said Kuttner. “On Inauguration Day in January 2025, Trump signed the ‘Unleashing American Energy’ executive order, revoking the federal target that EVs comprise 50 percent of new car sales by 2030 and freezing the $5 billion National Electric Vehicle Infrastructure program to create a national charging network.”
Trump’s One Big Beautiful Bill Act and subsequent legislative changes, terminated the $7,500 tax credit for new EV purchases, leading to a sharp drop in EV investment in red states like Georgia, South Carolina, and Arizona. As a result, Ford canceled production of its F-150 electric pickup truck and GM moved its Orion plant back to manufacturing heavy gas-powered SUVs, whose sales are “in the red” in the second quarter of 2026.
“Meanwhile, China’s domination of the global EV market has only accelerated. China already accounts for about 75 percent of all EVs produced, and more than 60 percent of global sales,” said Kuttner, adding that EV sales top more than half of all auto sales in Europe and Asia.
“This is the future, and Trump is causing Detroit to miss out,” said Kuttner.
“At this writing, Michigan GOP senatorial candidate Mike Rogers has ducked all questions about Trump’s tariffs,” said Kuttner, which gives Rogers and other Republican opponents the ability to further pound the party on economic issues while American voters frown at their shrinking bankbooks.
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