Ivey seeks ‘clarity’ on how Trump tariffs will affect Alabama auto plants

Gov. Kay Ivey said she met Tuesday with the Alliance for Automotive Innovation and is working to learn more about how President Trump’s tariffs will affect the auto industry in Alabama.

The Alliance for Automotive Information is a trade group representing the auto industry. Among its members are the companies with auto assembly plants in Alabama – Mercedes, Honda, Hyundai, Toyota, and Mazda.

“They are working hard to continue their growth and investment,” Ivey said. “And I thank them profusely for choosing to be in Alabama and to make investments and be a supporter of Alabama. They are great supporters.

See also: How Alabama’s automakers are preparing for Trump’s tariffs

“So, we’ll continue to work with them and the White House to clarify the impact of those tariffs.”

John Bozzella, president and CEO of the Alliance for Automotive Innovation, said the new 25% tariffs on imports from Canada and Mexico will raise prices.

“Most anticipate the price of some vehicle models will increase by as much as 25% and the negative impact on vehicle price and vehicle availability will be felt almost immediately,” Bozzella said in an article by Reuters published last week.

The Wall Street Journal reported that Trump’s tariffs on steel and aluminum will increase the cost of auto production.

The Trump administration says its goal is to bring more manufacturing jobs in America. The White House released a list of projects that it says are examples the strategy is working.

For example, Honda has decided to build produce its next-generation Civic hybrid in Indiana instead of Mexico because of tariffs, Reuters reported.

Alabama ranks in the top five among states for automotive production. Mercedes-Benz, Honda, Hyundai, and Toyota-Mazda have assembly plants in the state.