Why Alabama’s auto industry could take a big hit
Alabama has found success in the automotive industry by becoming the No. 1 auto-exporting state, as of 2023, after producing more than 1.1 million vehicles.
With President Donald Trump announcing last week that he would be imposing a 25% tariff on aluminum and steel imports that come into the United States from Canada, Mexico and China that will go into effect on March 12, Alabama is sure to feel the effects.
President Trump hopes that with this tariff, America will be rich again and it will decrease the amount of the drugs, like fentanyl, into the country as well as decrease the number of migrants who come into the country.
More auto tariffs:Trump’s new tariff on China has automakers reassessing necessary parts
Trump tariffs: Alabama’s automobile trade industry impact
Industries across Alabama could feel a significant impact with Alabama’s two biggest traders being Mexico, who Alabama did $8.15 billion in imports with in 2023, and Canada.
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While crude oil was the largest import for Alabama in 2023, automobile and automobile parts followed right behind. Motor vehicles accounted for $1.43 billion in imports while motor vehicle body parts were totaled at $2.26 billion combined.
The automobile industry in Alabama supports 88,947 employees with Mercedes-Benz located in Vance and Woodstock, Hyundai in Montgomery, as well Hyundai, Honda and Mazda-Toyota plants planted in various parts of Alabama.
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Aerospace in Alabama could also feel an impact
Another industry in Alabama that can potentially be impacted due to President Trump’s tariffs is the aerospace industry.
Alabama is home to companies such as NASA, Airbus, Boeing and Lockheed Martin where they accounted for $6.4 billion in exports from 2020-2023.
With Alabama having a strong military presence as well, Huntsville International Airport just expanded its facility with a new aviation hangar that will house 30 foreign military partners.
Additional tariffs to be expected
On top of adding tariffs to aluminum and steel, President Trump is also looking to add additional tariffs to computer chips, pharmaceuticals, oil and copper.
Jennifer Lindahl is a Breaking and Trending Reporter for the Deep South Connect Team for Gannett/USA Today. Connect with her on X @jenn_lindahl and email at [email protected].
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