Anger in Detroit after Trump's tariff announcement: "He wants to show off"
Swedish Mats: "No one agrees in the car industry"
Erik Melin
Published 2025-03-28 22.18
American car tariffs are hitting both foreign and domestic car industries.
In Detroit, the mood is very subdued, says Swedish Mats Johansson, who is active in the industry.
- Donald Trump just wants to show off.
Quick version
On Wednesday, Donald Trump announced that all American imports of vehicles and vehicle components will be subject to tariffs of 25 percent starting April 2.
Swedish companies in the automotive industry are affected to varying degrees, with Volvo Cars among those at risk of being affected the most. The company also plummeted on the stock market on Thursday.
But even in Detroit, America, with a long history of domestic automotive industry, the kind that Trump wants to support, uncertainty about what lies ahead is great.
“Sent back and forth”
Swedish Mats Johansson, 53, lives in Canada but works at a company in Detroit that supports the automotive industry with service and development. He notices that many are really angry about Donald Trump's actions.
– In the automotive industry, you won't find anyone who agrees with the tariffs. The problem for us is that the cars are often sent back and forth as they receive components in Canada that are then installed in Mexico. Back to Canada and then final assembly in the USA. So they are punished several times. It's not so fun here right now.
Why do you think Trump is introducing the tariffs?
– There are a lot of conspiracy theories that include everything from them trying to kill GM, Ford and Stellantis so that some American oligarch can take over and rebuild. Because economically it is impossible to move all the factories back to the USA and find labor.
"Costs 1 million kronor an hour"
Before such a transformation could be completed, long shutdowns of car factories would have become necessary. It would then be a matter of starting up new factories on American soil, recruiting personnel and building infrastructure around the industries, Mats explains.
– And each shutdown
(about 1 million kronor). So closing for a couple of months, at least, would be impossible.
But is it necessary to close at all?
– Most cars are now sold at break-even price or even at a loss. It is spare parts and service that generate money. A 25 percent increase in parts would require a final increase towards the customer of around 15 to 20 percent. That would make them unsellable, or a too big loss if the manufacturer swallows the price.
Mats himself believes that this is another negotiating game on Trump's part.
– I don't think he wants the tariffs in place, but hopes that the countries will be scared and negotiate with him to avoid them. In addition, Americans don't watch news outside the US, so it's a game for the gallery. He wants to show the people how tough and good he is, says Mats Johansson.
The concern is spreading
Mats Johansson is personally not worried that his job will disappear, since the company he works for does not only work against the automotive industry, but finds it unfortunate that so many in the industry are currently living in uncertainty.
In Detroit and Michigan, just under 200,000 people work directly in the auto industry, but over 1.1 million are indirectly connected to the industry. That's almost 20 percent of employment in the state, according to industry figures from 2022.
Like Northvolt's bankruptcy in Skellefteå, it's not just the car manufacturing itself that's worrying right now.
- There are hotels, restaurants and shops that have been built around the giant complexes of the manufacturers, so the whole of Detroit and the surrounding area is very angry and scared right now.
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