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The Zero Emission Transportation Association, a trade group supporting electric vehicle adoption and the buildout of a robust EV supply chain in the U.S., on Wednesday warned U.S. tariffs could negatively impact the electric vehicle industry and lead to the loss of jobs.

In a statement following President Donald Trump’s announcement of additional global tariffs , ZETA said taxing imports from long-standing U.S. trade partners, some of which have committed billions of dollars of investments in U.S. factories to produce EV batteries, can derail manufacturing projects that are creating jobs and bringing new economic opportunities to regions of the country.

The statement also came hours before a new 25% U.S. tariff on imported passenger vehicles took effect.

“The EV and battery sector is working hard to ensure that the American auto industry continues to be an engine of economic growth for generations to come, " Albert Gore, ZETA’s executive director, said in the statement. “From building new manufacturing capacity to securing supply chains for components and hardrock minerals needed for modern technologies, including electric vehicles and battery supplies, our industry is competing to win.”

ZETA members include Tesla, Rivian, Mercedes-Benz, Waymo and Panasonic.

Although the trade group expressed concern about the fallout from steep tariffs, the industry association supports President Trump’s March 20 executive order directing executive department and agency heads overseeing the permitting process for domestic mineral production to speed up the approval of new mining projects. The intent of the order is to boost domestic production of critical materials used in EV batteries and other applications.

“Hardrock mineral development—from extraction through processing and refining—is truly the bedrock of our modern economy,” Rebecca Konolige, ZETA’s director of federal affairs, said in a separate statement on March 24 . “Commodities like copper, graphite, lithium, and cobalt are essential to countless advanced technologies, from missile systems to consumer electronics to electric vehicles.”

ZETA said it's ready to work with the Trump administration to support what it calls “productive trade policies” for growing the U.S. manufacturing sector, and many experts agree that imposing steep tariffs is not a viable solution.

"With U.S. auto manufacturers heavily reliant on Mexico, Canada, and China for both production and spare parts, shifting tariff policies create ongoing uncertainty. The key to navigating these challenges isn’t just reacting—it’s building agility into supply chain operations,” said Stephen Gannon, VP of products of TrueAuto at TrueCommerce, in an emailed statement.

Trump’s auto industry tariffs come as companies pour billions into electric vehicle and battery manufacturing in the U.S., including a recently announced $21 billion commitment by Hyundai Motor Group to expand EV production at plants in Georgia and Alabama. As part of its massive investment, Hyundai plans to build a $5.8 billion steel plant in Louisiana that will supply steel to the two EV factories.

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