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How this auto union leader's support for Trump's tariffs scrambled labor politics again

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How this auto union leader's support for Trump's tariffs scrambled labor politics again
News

News

How this auto union leader's support for Trump's tariffs scrambled labor politics again

2025-03-28 07:07 Last Updated At:07:10

WASHINGTON (AP) — President Donald Trump has once again scrambled the politics of organized labor and the working class with his planned tariffs on auto imports.

The White House is eagerly promoting supportive comments from the nation’s top auto worker union leader, a previous Trump critic who endorsed Democrat Kamala Harris over Trump in 2024. At least a few Democrats from auto-producing states have joined their Republican colleagues in applauding the tariffs that Trump casts as a long-term jobs boost for U.S.-based auto production. Other Democrats, meanwhile, have blasted Trump’s policy, warning that a trade war will drive up inflation and raise costs for all Americans.

Long-term consequences from Trump’s planned 25% tariffs on imported vehicles remain unclear, as does the fallout from additional tariffs he has announced on products coming from Canada, Mexico, China and other U.S. trading partners. But the latest political uproar highlights the ongoing effort by the Republican president to reorient party alliances and voter loyalties in ways that not only explain his 2024 comeback but could reverberate into the 2026 midterms and beyond.

In praising the Trump administration's tariff plan, United Auto Workers President Shawn Fain asserted the union's independence.

“The UAW,  and the working class in general, couldn’t care less about party politics,” Fain said.

Fain, who announced UAW’s endorsement of Harris over Trump last year by declaring Trump to be “all talk” on labor issues, hailed his administration this week "for stepping up to end the free-trade disaster that has devastated working-class communities for decades.”

That turnabout wasn't lost on White House Press Secretary Karoline Leavitt, who declared Thursday that the president's new tariffs “are a big deal for auto workers in the industry.”

Fain, she noted, “wasn’t the greatest fan of the president on the campaign trail.”

That may have understated the union leader's criticisms.

“When Donald Trump was in office,” Fain had said then, “he did nothing to help the American auto worker.”

Michigan Rep. Debbie Dingell, a Democrat who represents thousands of UAW members in a key presidential swing state, likewise has been a Trump critic but called the tariff’s “a good first step.” She noted, however, that lawmakers are seeking clarification on many details of Trump’s plans.

Organized labor, heavily concentrated in northeastern states and the Great Lakes region, has historically aligned with Democrats, including supporting more protectionist policies like tariffs. Republicans, meanwhile, pressed for decades to liberalize international trade.

Democrat President Bill Clinton first upended those alliances when he signed the North American Free Trade Agreement in 1993, breaking with unions that had endorsed him in 1992. The effects, alongside decades of so-called “culture wars,” have coincided with working-class voters being more up for grabs. Trump — who renegotiated NAFTA during his first term but didn't overhaul its essential free trade provisions — has made an especially strong play for union support and backing from non-union working-class voters who historically tilted more Democratic.

In 2024, Harris garnered the support of more than half of voters who were union members or were in a household with a union member, according to AP VoteCast. But 44% supported Trump, an uptick from the 42% he got four years earlier. In that election, then-challenger Joe Biden, a Democrat, drew 56% of voters in union households.

With Trump back in power, Republicans are now the full-throated protectionists echoing union leaders like Fain.

“Hopefully, it results in fair treatment and more jobs in America,” said House Majority Leader Steve Scalise, R-Louisiana. Pointing to a recent Hyundai announcement that it would build a plant in Louisiana, Scalise argued that Trump’s plans “already are paying off.”

Most Democratic leaders remain unconvinced. Some emphasize that tariffs increase costs that are often passed on to consumers in the form of higher prices. Even auto manufacturers who assemble their cars in the U.S. depend heavily on parts made elsewhere.

Other Democrats point to the uncertainty Trump has created for U.S. trading partners and within the business community — by threatening tariffs, announcing some, putting others on hold and leaving details in limbo.

“If you want to bring more manufacturing jobs here into our nation, how can you plan and make all those plans and those commitments when these tariffs could be turned tomorrow or next week?” Sen. John Fetterman, D-Pennsylvania.

Fetterman has been an outspoken critic of his party’s struggle to reach working-class voters, and he said he remains aligned with Trump philosophically on “protecting some of our domestic industries.” But Fetterman said Trump’s scattershot approach so far has amounted to “punching our allies in the mouth.”

Senate Democrats next week will force a vote on a resolution that would nullify the emergency that Trump has used to threaten tariffs on Canada.

Sen. Tim Kaine, D-Virginia, said Trump’s aim is not about boosting U.S. production but generating short-term tariff revenues to help pay for sweeping tax cut plans, which are tilted toward wealthy Americans.

Still, Kaine acknowledged that Democrats have “some real divisions on trade,” and he’s worked to corral support for the resolution from steelworker and machinist unions in a nod to the complicated politics. “Having labor support for dropping tariffs is not to be taken for granted -- that’s a little bit unusual,” Kaine said.

Fain, for his part, said in his endorsement of Trump's auto tariffs that trade is just one aspect of policy that affects workers. He called additionally for “securing union rights for autoworkers everywhere with a strong National Labor Relations Board, a decent retirement with Social Security benefits protected, healthcare for all workers including through Medicare and Medicaid, and dignity on and off the job.”

All of those points could put him at odds with Trump and Republicans. Trump remains in a legal fight over his efforts to fire a Democratic appointee to the NLRB to speed the board’s tilt to the right and away from supporting organizing rights. He also has not endorsed the PRO Act, pending legislation that would strengthen workers’ organizing rights.

Still, in a recent interview with The Associated Press, Fain issued a profanity-laced warning for Democrats, specifically chiding the party for leaning on wealthy donors enriched by what he called “a race to the bottom” since NAFTA's enactment.

“The reason Donald Trump's president right now is we've got too many Democrats who can't decide who the f—- they want to represent," Fain said, “and that's a problem.” — Barrow reported from Atlanta. Associated Press writers Kevin Freking and Amelia Thomson-DeVeaux in Washington and Steve Peoples in New York contributed reporting.

New Hyundai automobiles are parked at auto terminal in Philadelphia, Thursday, March 27, 2025. (AP Photo/Matt Rourke)

New Hyundai automobiles are parked at auto terminal in Philadelphia, Thursday, March 27, 2025. (AP Photo/Matt Rourke)

FILE - United Auto Workers President Shawn Fain speaks at an election night campaign party, Nov. 5, 2024, in Detroit. (AP Photo/Carlos Osorio, File)

FILE - United Auto Workers President Shawn Fain speaks at an election night campaign party, Nov. 5, 2024, in Detroit. (AP Photo/Carlos Osorio, File)

Wall Street followed global markets lower early Monday ahead of the Trump administration's latest tariff rollout later this week.

Futures for the S&P 500 sank 1.2%, while futures for the Dow Jones Industrial Average dropped 0.7%. Futures for the Nasdaq, where many of the biggest U.S. technology companies trade, tumbled 1.6%.

Tesla's woes continued as Elon Musk's electric car company slid 6.1%. Tesla is down 42% since Trump took office Jan. 20, with losses driven in part by the public perception of Musk's oversight of the new Department of Government Efficiency that’s slashing government spending.

Tesla sales in Europe and the U.S. have fallen, partly due to Musk’s political shift to the right. Protestors have targeted the automaker’s showrooms, vehicle lots and charging stations, with some resorting to vandalism, including burning privately owned vehicles.

Apple shares were down less than 1% after France’s antitrust watchdog fined the tech giant $162 million over the rollout of a privacy feature resulted in abuse of competition law.

Shares of the mortgage company Rocket fell 3.5% after it announced that it is buying competitor Mr. Cooper in an all-stock deal valued at $9.4 billion. Mr. Cooper shares soared more than 26%. The deals comes just weeks after Rocket acquired real estate listing company Redfin.

The price of gold hit a record high before inching back down to $3,149 an ounce. Investors continue to pull out of equities in search of traditional safe havens like gold.

Markets worldwide have been anxious over a potentially toxic mix of worsening inflation and a slowing U.S. economy because households are afraid to spend due to the deepening trade war, escalated U.S. by President Donald Trump.

Trump has dubbed Wednesday “Liberation Day,” when he will roll out tariffs tailored to each of the United States’ trading partners that he promises will free the the country from foreign goods.

The details of Trump’s next round of import taxes are still sketchy. Most economic analyses say average U.S. families would have to absorb the cost of his tariffs in the form of higher prices and lower incomes. That has contributed to significant decline in U.S. consumer confidence this year, which has alarmed investors.

On Friday, the S&P 500 fell 2% for one of its worst days in the last two years. It was its fifth losing week in the last six, helping to drive the index down 5% this year. The Dow sank 1.7% and the Nasdaq composite fell 2.7% and is down more than 10% in 2025.

Many of the countries that run trade surpluses with the U.S. and depend heavily on export manufacturing are in Asia, Stephen Innes of SPI Asset Management said in a commentary.

“Asia is ground zero. Of the 21 countries under USTR (U.S. Trade Representative) scrutiny, nine are in Asia,” Innes noted.

Tokyo’s benchmark fell 4.1% to 35,617.56, while the Hang Seng in Hong Kong lost 1.3% to 23,119.58.

The Shanghai Composite index declined 0.5% to 3,335.75.

In South Korea, the Kospi fell 3% to 2,481.12, while Australia’s S&P/ASX 200 sank 1.7%, closing at 7,843.40.

Taiwan’s Taiex lost 4.2%.

European markets opened lower. Britain's FTSE 100 slid 1.4%, while France's CAC 40 and Germany's DAX each fell 2%.

Thailand’s SET lost 1.3% after a powerful earthquake centered in Myanmar rattled the region, causing widespread destruction in the country, also known as Burma, and less damage in places like Bangkok.

Shares in Italian Thai Development, developer of a partially built 30-story high-rise office building under construction that collapsed, tumbled 27%. Thai officials said they are investigating the cause of the disaster, which left dozens of construction workers missing.

A currency trader walks by the screens showing the foreign exchange rate between U.S. dollar and South Korean won, left, and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a foreign exchange dealing room in Seoul, South Korea, Monday, March 31, 2025. (AP Photo/Lee Jin-man)

A currency trader walks by the screens showing the foreign exchange rate between U.S. dollar and South Korean won, left, and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a foreign exchange dealing room in Seoul, South Korea, Monday, March 31, 2025. (AP Photo/Lee Jin-man)

The screens showing the Korea Composite Stock Price Index (KOSPI), left, the foreign exchange rate between U.S. dollar and South Korean won and the Korean Securities Dealers Automated Quotations (KOSDAQ) are seen at a foreign exchange dealing room in Seoul, South Korea, Monday, March 31, 2025. (AP Photo/Lee Jin-man)

The screens showing the Korea Composite Stock Price Index (KOSPI), left, the foreign exchange rate between U.S. dollar and South Korean won and the Korean Securities Dealers Automated Quotations (KOSDAQ) are seen at a foreign exchange dealing room in Seoul, South Korea, Monday, March 31, 2025. (AP Photo/Lee Jin-man)

An electronic stock board shows that Nikkei stock average dropped over 1,500 Japanese yen in Tokyo Monday, March 31, 2025. (Kyodo News via AP)

An electronic stock board shows that Nikkei stock average dropped over 1,500 Japanese yen in Tokyo Monday, March 31, 2025. (Kyodo News via AP)

A currency trader works under an electronic stock board at a foreign currency trading firm in Tokyo Monday, March 31, 2025. (Kyodo News via AP)

A currency trader works under an electronic stock board at a foreign currency trading firm in Tokyo Monday, March 31, 2025. (Kyodo News via AP)

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