The chairman of Stellantis NV said President Donald Trump should focus new tariffs on imported vehicles made without US parts content instead of raising duties on Mexico and Canada.
“The real opportunity” for the administration to boost US jobs and investment lies with “closing the loophole that currently allows approximately 4 million vehicles into the country with any US content,” Stellantis Chairman John Elkann said Wednesday on an earnings call with analysts.
Read More: Stellantis Falls on Forecast for Little Recovery From Dire Year
The comment marks the latest example of how US auto industry leaders are trying to convince Trump to spare them from 25% levies on imports from Canada and Mexico that are set to take effect next week. Ford Motor Co. CEO Jim Farley earlier this month said those duties would “blow a hole” in the US industry and serve as a “windfall” for rivals that can import more freely from Asia and Europe.
US auto executives and lobbyists argue that vehicles made in North America that adhere to parts-content requirements under a free trade agreement Trump renegotiated in his first term should be exempt from any new duties. New levies could result in billions of extra costs for US automakers as the North America supply chain is closely integrated, threatening auto sales and jobs in the industry.
Read More: Stellantis Touts US Factory Investment After Trump Meeting
Elkann said the maker of Jeep SUVs and Ram pickups already produces vehicles with US parts content in line with those rules.
