Trump finds unexpected ally in auto union leader over tariffs

Trump finds unexpected ally in auto union leader over tariffs


United Automobile Workers (UAW) President Shawn Fain speaks on the first day of the Democratic National Convention (DNC) at the United Center in Chicago, Illinois, on August 19, 2024. 

Mandel Ngan | AFP | Getty Images

DETROIT โ€” The head of the United Auto Workers has become an unexpected ally for President Donald Trumpโ€™s plans for North American tariffs.

UAW President Shawn Fain, who was boisterous about his disdain for Trump during the presidentโ€™s campaign, is openly voicing approval of the tariffs, which include 25% levies on automobiles and supporting parts.

โ€œTariffs are an attempt to stop the bleeding from the hemorrhaging of jobs in America for the last 33 years,โ€ Fain said Sunday on ABC Newsโ€™ โ€œThis Week,โ€ referring to the implementation of the North American Free Trade Agreement in 1992. โ€œTariffs arenโ€™t the end solution, but they are a huge factor in creating, fixing the problem.โ€

Read more CNBC tariffs coverage

Tariffs for auto companies that currently meet standards under the United States-Mexico-Canada Agreement, or USMCA, are paused until April 2, following Trump speaking with leaders from General Motors, Ford Motor and Stellantis.

The April 2 delay, which occurred a day after implementation of broader 25% tariffs on goods from Canada and Mexico, aligns with other Trump-initiated automotive tariffs for vehicles and parts being imported from outside of North America.

Fain on Sunday said he had not spoken directly to Trump, but โ€œhas been working with his team.โ€

Fainโ€™s comments follow the union releasing a statement supporting the tariffs earlier in the week, saying itโ€™s up to companies to handle any additional costs that may occur.

The union, which had endorsed then-Vice President Kamala Harris, said itโ€™s in โ€œactive negotiations with the Trump administration about their plans to end the free trade disaster.โ€

โ€œWe are glad to see an American president take aggressive action on ending the free trade disaster that has dropped like a bomb on the working class,โ€ the union said Tuesday. โ€œThereโ€™s been a lot of talk of these tariffs โ€˜disruptingโ€™ the economy. But if corporate America chooses to price-gouge the American consumer or attack the American worker because they donโ€™t want to pay their fair share, corporate America bears the blame for that decision.โ€

Fain is one of the only high-profile supporters of Trumpโ€™s tariffs among automotive leaders. Auto executives as well as trade associations supporting automakers have described the tariffs as adding unnecessary chaos and additional costs to the industry.

โ€œPresident Trump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of โ€ฆ the most signature accomplishments,โ€ Ford CEO Jim Farley said last month. โ€œSo far what weโ€™re seeing is a lot of cost, and a lot of chaos.โ€

Fain has previously condemned the North American Free Trade Agreement โ€” which has been superseded by Trumpโ€™s USMCA trade deal since 2020 โ€” saying such trade agreements have caused the country to lose jobs and manufacturing.

Fain and Trump have been at odds and publicly trading remarks since the union leader was elected in 2023. Trump called for Fain to be fired during a speech last year at the Republican National Convention.

Fain has regularly called Trump a โ€œscabโ€ and billionaire who doesnโ€™t care about American workers, but his comments Sunday on Trump show his stance may have softened.

โ€œThe election is over. Donald Trump is the president, and we want to get to work to fix the problems that are wrong with this country, with our economy,โ€ Fain said. โ€œAnd the American people expect that. They expect leaders to stand up and lead. They donโ€™t expect us to sit back.โ€

The UAW remains under a federal monitorship following a yearslong investigation into the union involving embezzlement, bribery and other charges ahead of Fainโ€™s election. That probe resulted in several convictions of union leaders and Fiat Chrysler executives, including two past union presidents.

Federal monitor Neil Barofsky last year disclosed an investigation into Fain as well as other union leaders, accusing them of obstructing the probe and interfering with access to information.

In January, the monitorโ€™s office said it would provide further updates on its investigative activities in a subsequent report.

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