Trump's 25% Tariffs On Auto Imports Are Worth The 'Short-Term Pain,' Says Ohio GOP Senator

Ohio Republican Senator Bernie Moreno is all in with President Trump‘s tariffs on auto imports from Canada and Mexico. He says they’re worth the pain on the industry because they’ll help curb the flow of undocumented migrants and illegal drugs into the U.S.

"Trump's 100% right, and all of us should rally around his demand that our two neighbors step up," Moreno said in an interview last week, reported Bloomberg. "Until they do what they need to do, yes, am I willing to take some amount of short-term pain? Absolutely, 100%.”

Auto industry leaders have warned that the measures pose significant risks to industry profits, employment and sales as they prepare for higher costs and disruptions to their North American supply chains.

Auto Workers In The Buckeye State

Ohio, home to nearly 100,000 auto and related industry workers, is the largest U.S. producer of engines and the second-largest producer of transmissions. Automakers with factories in Ohio include General Motors Co. (NYSE:GM), Stellantis N.V. (NYSE:STLA), Honda Motor Co. (NYSE:HMC) and Ford Motor Company (NYSE:F). The Goodyear Tire & Rubber Company (NASDAQ:GT) is based in Ohio.

Trump Tariffs Take Effect

“The tariffs are all set,” Trump told reporters on Monday afternoon, saying that there was "no room" for Canada or Mexico to negotiate further delays. “They go into effect tomorrow.”

The tariffs impose 25% duties on most Canadian and Mexican imports while raising Chinese imports to 20%. These measures apply to approximately $1.5 trillion in annual imports, signaling to markets that Trump is willing to leverage economic pressure to generate revenue and boost domestic manufacturing jobs, noted the outlet.

Read Also: Canadian PM Justin Trudeau Retaliates With 25% Tariffs On US Goods Amid Escalating Trade War

Moreno Wants To Repeal Emissions Rules

Moreno, who was a luxury car dealer in Cleveland before entering politics, recently introduced legislation backed by GM, Stellantis, and Toyota Motor Corp. (NYSE:TM) that would repeal emissions rules and give tax breaks to car manufacturers by loosening fuel economy and clean-air regulations.

The GOP Senator, who contends that U.S. auto manufacturing has been under attack from inconsistent regulations, foreign competition and misguided federal policies, said his bill would give automakers greater flexibility and long-term stability, according to Cleveland.com.

Moreno’s bill also proposes a 200% tax deduction on autoworker wages, contingent on employers meeting specific criteria, which he argues could help offset the financial strain of tariffs.

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