Alabama Governor Kay Ivey met with representatives of the Alliance for Automotive Innovation on Tuesday to discuss the potential effects of President Donald Trump’s tariffs on the state’s automotive industry. The meeting focused on understanding how the trade policies could impact vehicle production, pricing, and investments in Alabama.
The Alliance for Automotive Innovation, a trade group representing automakers, includes several companies with manufacturing facilities in Alabama, such as Mercedes-Benz, Honda, Hyundai, Toyota, and Mazda.
Per AL.com, Ivey expressed appreciation for the automakers’ contributions to the state economy and acknowledged their investment.
“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.”
The Trump administration recently imposed a 25% tariff on auto imports from Canada and Mexico, which some industry experts predict will lead to higher costs.
John Bozzella, president and CEO of the Alliance for Automotive Innovation, told Reuters that some vehicle prices could increase by up to 25%, with the effects being seen almost immediately.
“The negative impact on vehicle price and vehicle availability will be felt almost immediately,” Bozzella noted.
Additionally, the Wall Street Journal reported that tariffs on steel and aluminum could increase auto production costs for manufacturers.
Alabama is among the top five U.S. states for automotive production. The state is home to several major manufacturing plants operated by Mercedes-Benz, Honda, Hyundai, and Toyota-Mazda, which provide thousands of jobs and contribute to the state’s economy.
The Trump administration has said that the tariffs aim to increase domestic manufacturing jobs, and some companies have adjusted their production plans. Reuters also reported that Honda’s next-generation Civic hybrid will be built in Indiana instead of Mexico, a move attributed in part to trade policy changes.
Ivey emphasized that she will continue working with automakers and federal officials to further assess the tariffs’ impact on Alabama’s economy and workforce.
Sherri Blevins is a writer for Mountain Valley News and a staff writer for Yellowhammer News. You may contact her at [email protected].
