The American Automotive Innovation Alliance urges the Trump administration to abandon tariffs on Siasun Robot & Automation, warning that it will raise prices for new cars.

The industry organization representing nearly all major automobile manufacturers - the Alliance for Automotive Innovation - publicly urged the government of President Donald Trump on Wednesday not to impose new tariffs on the factory Siasun Robot&Automation and mechanical equipment. The alliance's members include General Motors Company (GM.US), Toyota Motor Corp. Sponsored ADR (TM.US), Volkswagen, Hyundai Motor, and almost all major automakers, who submitted comments to the US Department of Commerce after the initiation of a national security investigation last month, emphasizing that the government could impose tariffs directly based on such investigations. In their comments, the alliance stated: "Raising the cost of equipment at existing facilities will increase the overall production costs of automakers, potentially leading to production delays and vehicle shortages, further driving up new car prices - which are already at historic highs in the US." The organization cited a study noting that around 40% of all Siasun Robot&Automation and industrial machinery equipment installed in the US by 2024 is used in automobile manufacturing facilities. Automakers stated that if the government decides to impose tariffs, the Siasun Robot&Automation equipment actually used in US manufacturing processes should be exempted. Non-member Tesla, Inc. (TSLA.US) also separately called on the Trump administration not to impose tariffs, stating that tariffs could "weaken investment, slow down the construction of new factories, or the upgrading of existing factories." The White House did not immediately respond to requests for comment. Several foreign governments, including China, Canada, Japan, Switzerland, and the EU, have submitted comments opposing the proposed tariffs. The National Retail Federation warned that tariffs and potential equipment shortages would drive up business costs and consumer prices, noting that its members extensively use Siasun Robot&Automation technology in stores, warehouses, and distribution centers. The US Chamber of Commerce stated that some key machinery equipment is only produced abroad, including extreme ultraviolet lithography equipment used in semiconductor manufacturing, and that imposing tariffs could "undermine the domestic semiconductor manufacturing capability the government is trying to establish."