United Auto Workers (UAW) President Shawn Fain has emerged as an unexpected advocate for President Donald Trump's tariffs on automobiles and supporting parts, which impose a 25% levy. This support marks a significant deviation from the typical stance within the auto industry. Fain's endorsement of the tariffs indicates a potential shift in his previously adversarial relationship with Trump.
Fain, who has been vocal about the impacts of trade agreements like the North American Free Trade Agreement (NAFTA), believes tariffs are a crucial step toward addressing job loss and manufacturing decline in the U.S. He commented on the importance of tariffs in tackling economic issues.
"Tariffs aren't the end solution, but they are a huge factor in creating, fixing the problem." – Fain
He further elaborated on the role of tariffs in combating job losses.
"Tariffs are an attempt to stop the bleeding from the hemorrhaging of jobs in America for the last 33 years." – Fain
Despite their contentious history, Fain has been coordinating with Trump's administration on tariff implementation. The UAW recently issued a statement backing the tariffs, emphasizing that companies should manage any extra costs incurred. The union's decision to engage with Trump's team comes as it negotiates potential resolutions to longstanding trade issues.
Historically, Fain has branded Trump as a "scab" and criticized him for lacking concern for American workers. However, his recent comments suggest a possible moderation in his stance. While Fain has not directly communicated with Trump, his collaboration with Trump's team underscores a pragmatic approach to navigating complex trade dynamics.
Fain's support for Trump's tariffs is notable, given his previous endorsement of then-Vice President Kamala Harris. The union remains in "active negotiations with the Trump administration about their plans to end the free trade disaster." This alignment marks a rare instance of unity between Fain and Trump amid their ongoing discord.
Their tumultuous relationship intensified after Trump called for Fain's dismissal during a Republican National Convention speech last year. Since Fain's election as UAW President in 2023, he and Trump have frequently exchanged public criticisms.
Adding complexity to this narrative is the UAW's status under federal monitorship due to a prolonged investigation into embezzlement, bribery, and other charges against union leaders. Federal monitor Neil Barofsky announced an inquiry into Fain and other leaders, alleging obstruction and interference with the investigation. This probe led to multiple convictions of union leaders and Fiat Chrysler executives.
The broader auto industry remains skeptical about the tariffs. Ford CEO Jim Farley expressed concern over their impact.
"So far what we're seeing is a lot of cost, and a lot of chaos." – Jim Farley
While Farley acknowledged potential benefits of the tariffs under certain conditions, he highlighted current challenges facing the industry.
"President Trump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments," – Jim Farley