As the auto industry braces for the impact of impending U.S. tariffs on imported vehicles, United Auto Workers (UAW) President Shawn Fain is rejecting the widely held belief that these measures will harm the industry. While analysts predict that President Donald Trump’s 25% tariffs, set to take effect on April 2, will drive up vehicle prices, cut automaker profits, and disrupt North American production, he insists they will serve as a catalyst for domestic job growth.
Speaking at the Walter P. Reuther Library in Detroit on March 27, Fain compared the current debate over tariffs to the discourse surrounding the 1993 North American Free Trade Agreement (NAFTA). He pointed to initial optimistic projections about NAFTA that ultimately failed to materialize, arguing that past trade policies have led to widespread job losses, factory closures, and wage stagnation. According to Fain, history has shown that free trade agreements often benefit corporations at the expense of American workers.
The UAW has openly supported Trump’s tariff policy, issuing a statement on March 26 suggesting that the move could lead to the creation of thousands of U.S. jobs. The union sees underutilized manufacturing facilities, such as Ford’s Flat Rock Assembly and Stellantis’ Warren Truck plant, as prime candidates for increased domestic production. Fain argues that automakers have the capacity to shift production back to the U.S. in the near term rather than taking years to construct new facilities.
Fain contends that automakers have been highly profitable for over a decade and could absorb the tariff costs without passing them onto consumers. He views price hikes as a corporate choice rather than an unavoidable consequence of trade policy.
His endorsement of Trump’s tariffs represents a significant departure from his previous opposition to the former president. During the 2024 election, he actively campaigned against Trump, warning that his policies would be detrimental to the working class. However, he now acknowledges that Trump is the first president in decades to take tangible action against unfavorable trade policies. While he maintains disagreements with the administration on most issues, he argues that tariffs align with the union’s long-standing calls for holding corporations accountable.
Fain’s stance contrasts with that of Canadian union Unifor, which has strongly opposed the tariffs. Despite this divide, he asserts that UAW and Unifor maintain a strong relationship and that both unions are ultimately working toward the same goal: securing better conditions for workers. He remains confident that there is ample opportunity for increased employment across North America, emphasizing that the primary goal is ensuring corporations prioritize American workers over short-term profits.
