Opinion | Trump says he wants to save the U.S. auto industry. His policies may destroy it.

President Trump has created what is known as the Luddite trap for the U.S. auto industry: His tariffs are designed to protect it from foreign competition, and his domestic policies may detach it from innovation. Together, they risked that American automakers were isolated and unable to compete with their own merits. The damage to our economy and national security can be far-reaching.

For more than a century, the automotive industry has been the cornerstone of American industrial power: it revolutionized manufacturing through assembly lines, counterfeit stronger forms of steel, aluminum and carbon fiber, and drives technological innovation through the invention of sophisticated robots and sensors. And, because the automotive industry has a far greater influence than factories and supports a large supply of chains, restaurants and retail stores, it is also a major driver of industrial opportunities in the Midwest.

But today, U.S. automakers lag behind in the global innovation competition in electrification, digitalization and automation. China has made great strides in producing the next generation of vehicles and is backed by billions of state subsidies to undercut competitors and dominate global manufacturing. Although Tesla specifically led battery and automation innovations, the scale and quality of China’s manufacturing industry still put the entire U.S. automotive industry at risk. If we lose the supply chain, workers and industrial capacity that produces the cars we drive, we may also lose the ability to produce important technology and military equipment.

This is not the first time that the U.S. auto industry has faced a critical challenge. In the early 1980s, a fierce attack on low-priced, fuel and government-subsidized Japanese cars overwhelmed U.S. automakers, prompting President Ronald Reagan to impose temporary restrictions on Japanese auto imports. This has brought U.S. automakers to the runway, increasing their profits and innovations (including producing the first minivans).

We should learn from today’s history: protections should be targeted and coordinated with allies, with limited time and paired with innovative incentives.

Unfortunately, this is contrary to Trump’s strategy, which imposes a 25% tax on imported vehicles and parts. As nearly 60% of parts in typical U.S.-made vehicles are imported, these comprehensive tariffs will drive U.S. cars prices, reducing their global competitiveness and ultimately reducing production. It is estimated that among smaller and more vulnerable companies, our automotive industry will cost the most. It has resulted in layoffs.

Blanket tariffs are especially China’s advantages. By targeting Mexico, Germany and Japan, Mr. Trump will damage the bottom line of his automakers, allowing China to compete less foreign countries when seeking new customers and drive our allies away.

If his tariffs are not enough, Mr. Trump is also attacking U.S. innovation, because of his dislike of electric cars and his desire to cut the size of the government. Worryingly, this is already one of the most important innovation axes in the 21st century: energy storage. Not only will the battery determine who won the race to build future cars, it can also decarbonize and maintain modern military power through key technologies such as battery-powered drones and electromagnetic weapons.

Although the United States lags behind producing batteries, government tax incentives have helped us start closing the gap.

If you want to design a strategy that hinders this progress, it’s hard for you to do better than Mr. Trump’s. His tariffs make it nearly impossible for U.S. automakers to purchase necessary parts for the next generation of cars, and his threat to eliminate tax incentives in domestic battery innovation and manufacturing industries, freezing new investments. In the first quarter of 2025 alone, the company canceled more than $6 billion in planned manufacturing projects, including a $1 billion factory in Georgia and a $1.2 billion factory in Arizona.

Mr. Trump also undermines the foundations of public and private R&D, which could drive progress that U.S. automakers need to keep pace with foreign competitors. In recent weeks, the government has cut $7 billion from the Department of Defense’s R&D budget, frozen billions of dollars in grants and retained funds from leading research universities. The National Science Foundation may be next.

Unexamined remaining, Mr. Trump’s attitude could force American cars into a death spiral, a symbol of national pride that does not matter in permanence.

There is a way to avoid using this Luddite trap. First, focus on the most pressing threats, such as China dumping heavily subsidized electric vehicles in foreign markets, which undermines U.S. innovation and investment. The United States should negotiate high temporary tariffs on these electric vehicles with allies and trading partners, many of whom are concerned about China’s domination over the global market and are eager to choose alternatives.

Second, the United States should work to support innovation in battery and other technologies that will help our automakers compete by providing more (no less than R&D funds), tax benefits for the industry first, and certainty of corporate investment.

Finally, we should innovate across the shore by welcoming foreign investment and talents. In exchange, foreign companies should be required to share their technology locally and purchase auto parts.

Unfortunately, Mr. Trump seems to set out to kill innovation and alienate our allies with indiscriminate tariffs. To overcome this, the United States will need a new alliance of domestic innovations by business executives, unions and politicians. For business, this means the extreme risks of having the courage to publicly convey Mr. Trump’s attitude, just as some leaders are already doing it. For auto workers and communities that rely on the industry, this means recognizing that, while unfair trade competition must be addressed, Mr. Trump’s current tariff strategy will only fail.

For policymakers on both sides, this means no doubt pursuing the best results for workers, communities and consumers: the U.S. automotive industry, which surpasses its competitors to produce the best vehicles in the world.