What just happened?
That's the question hanging over the automotive industry after the new administration's surprise announcement: a sweeping 25% tariff on imported vehicles and key auto parts.
To help make sense of it all, Jan Griffiths welcomes Glenn Stevens Jr., Executive Director of MichAuto. Together, they break down what this means for manufacturers, U.S. jobs, and the future of vehicle production in America.
While the intent behind the policy might sound great—more American jobs, stronger borders—the reality is a bit messier. Glenn explains that the auto industry saw changes coming, but not this fast or this broadly. And now, companies are scrambling to make sense of what applies, what doesn't, and how it impacts the bottom line.
They walk through the details of the policy shift: the tariff now hits not just imported vehicles but key parts like engines and electrical components. Glenn clarifies how USMCA-compliant products might catch a break—but only for now.
It's not just about cost. It's about timing. Sourcing and manufacturing strategies built over decades can't be reworked overnight. And while the idea of reshoring sounds patriotic, Glenn and Jan warn against letting nostalgia drive strategy.
They dig into the risk of weakening USMCA partnerships and what that could mean for competitiveness across the region—especially with Chinese automakers like BYD moving fast and taking over the market.
There's talk of "tariff stacking," confusion about who pays, and rising tensions between OEMs and suppliers. Some OEMs are stepping up to collaborate. Others? Not so much.
Through it all, Glenn reminds us of one powerful truth: the auto industry is resilient. From chip shortages to financial meltdowns, it's been tested before and has come out stronger.
This episode isn't just about tariffs. It's about how leaders show up in moments of uncertainty. And it's a reminder that the ones who listen, collaborate, and adapt will be the ones who lead the way forward.
🎙️Check out our podcast, THE AUTOMOTIVE LEADERS Podcast, where we interview some of the finest leadership minds on the planet.
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