logo
Consultation doesn't always equal consent

Consultation doesn't always equal consent

Yahoo08-05-2025

Pauly DenetclawICTUNITED NATIONS — The 24th session of the United Nations Permanent Forum on Indigenous Issues was focused on implementing the Declaration on the Rights of Indigenous Peoples — locally, nationally and globally.'At every stage, the global push for the so-called green transition has intensified demand for critical minerals, lithium, cobalt, nickel and others, many of which lie beneath sacred Indigenous lands and territories,' Aluki Kotierk, chair of the Permanent Forum, said in a speech. 'We cannot ignore (what) this threat poses to our rights, lands and way of life. Extractive activities when carried out in disregard of the right to self determination and the free, prior and informed consent of Indigenous peoples become another form of colonialism. We are not anti-development, but development must be on our terms and must be just.'An important aspect of the declaration, adopted by all 193 UN member states, is free, prior and informed consent.'It ensures that when Indigenous people sit down with a government, a company, or another third party, that they'll have all of the information they need, enough time, and really a fair opportunity to negotiate an outcome that's mutually beneficial to them and the other party,' said Kristen Carpenter, law professor and co-director of the Implementation Project.The Colorado-based project is a joint initiative between the Native American Rights Fund and the University of Colorado Law School to educate and advocate for the implementation of the United Nations Declaration on the Rights of Indigenous Peoples. Currently, the United States doesn't use this framework for decision making, opting for tribal consultation where the outcome doesn't have to include consent. However, countries who approved the declaration are required to codify it into their national laws. Native American Rights Fund and the National Congress of American Indians have been advocating for a transition to free, prior and informed consent.Tribal leaders from the United States often don't participate in their capacity as an elected official because the nations would have to apply as a non-governmental organization, which could be seen as a diminishment of tribal sovereignty. Despite this, the largest number of tribal leaders attended this year's forum, according to Carpenter. 'I'm so happy we have more tribal leaders than ever,' Carpenter said.
Tribal leaders play an important role locally, statewide and nationally. This could extend globally. 'It's important for tribal leaders to be here because you have a seat at the table,' said Joe Deere, co-chair of NCAI's international committee. 'Your voice is going to get heard. You're going to be able to communicate with other people across the United States, and now even other countries.'Over the last few years, the two national Indigenous organizations have ramped up their work internationally to advocate for the implementation of free, prior and informed consent in the United States, knowing it could take many years to actualize. 'We need to be ready to run a marathon to make that happen,' said Aaron Jones, co-chair of the international committee for the National Congress of American Indians. 'We're talking about implementing this and I know we're really in the early stages.'
HistoryIn 2007, an overwhelming majority of the countries that make up the UN General Assembly voted in favor of the United Nations Declaration on the Rights of Indigenous Peoples. It's not shocking that the United States, Canada, Australia and New Zealand initially voted against the legal, nonbinding declaration. (Eventually the four countries changed their position on a document that in essence states that Indigenous peoples are human beings with the right to exist in perpetuity.) The most well-known and heralded right listed in the 46 articles is free, prior and informed consent. This principle doesn't just apply to land rights, which it's often conflated with. It also applies to culture, language, food systems, intellectual property, governmental laws and landback. The phrasing is intentional with every word having a principle behind it. Free meaning that consent is given without coercion, threats, violence, manipulation or bribery. Consent is given voluntarily.There are many examples of consent given under threat, violence or coercion in the United States.
Navajo leaders signed the Treaty of 1868 with the federal government after the tribe was death marched over 400 miles from their homelands that span New Mexico, Arizona, and Utah to Bosque Redondo in eastcentral New Mexico where they were placed in a concentration camp. More than 8,000 Navajo people were forcibly kept at Bosque Redondo for three years. During that time, illness, starvation, or exposure took the lives of over 2,000 Navajo people. During the termination era, the federal government passed the Indian Relocation Act of 1956. It would coerce thousands of Indigenous people to leave their homelands with the promise of job opportunities, more pay, and housing. Instead, many were left without work, training or housing. Prior means that Indigenous communities and nations have adequate time to go through the decision-making process well-before governments, companies or other third parties have made a decision. The third word of the phrase, informed, means that Indigenous nations must be completely and fully informed about the environmental, health and social impacts of a planned project.
'For example, in the Philippines, when there was a mining project in one area, and the community said, 'We want to know the details of the project. So if you don't share to us the full information of the project, we cannot come out with an informed decision. We need to know everything,'' said Joan Carling, a renowned Indigenous rights activist and environmentalist. The documentation has to include all the information about the proposed project including size, purpose, scope and time length. Most importantly, the information must be shared in a language the community is most comfortable with, and in a format that aligns with the community's needs. 'What can be the positive and negative impacts of the project? So, it should be complete and accurate information,' said Carling, Kankanaey tribe in the Philippines.The Philippines codified free, prior and informed consent in the Indigenous Peoples Rights Act passed in 1997. A year later, Ecuador passed a new constitution that recognized Indigenous peoples right to free, prior and informed consent. In 2011, Colombia's Constitutional Court, which acts much like the Supreme Court, made a historic ruling that recognized the decision-making framework as a human right for Indigenous peoples. However, its full and fair implementation hasn't come without controversy.ConsentThere is a big difference between consultation and consent. Consultation in the United States doesn't have to include consent but tribal nations have made great strides in this area. Although not required, it's often a goal for the federal government to reach a consensus or agreement with a tribal nation. Historically, this hasn't always been the case. In 1948, the federal government approved the Garrison Dam that flooded 152,000 acres of Mandan Hidatsa and Arikara land in North Dakota, despite objections from the tribe. It forced the relocation of 325 families from the tribe. Last year, a judge ruled against Arizona-based tribes, Tohono O'odham Nation and San Carlos Apache Tribe, in a suit that was challenging the construction of the SunZia transmission line in southern Arizona's San Pedro Valley. The line passes through an area that holds historic, cultural and spiritual significance for the nations. The two tribes have been fighting its construction for years, advocating that it be built alongside land that has already been developed. It crosses 'one of the most intact cultural landscapes in the Southwest,' a 2024 lawsuit by the Tohono O'odham Nation stated. The project was a cornerstone of former President Joe Biden's green energy agenda. 'The SunZia Transmission Project will accelerate our nation's transition to a clean energy economy by unlocking renewable resources, creating jobs, lowering costs, and boosting local economies,' Deb Haaland, former Interior Secretary, said in a 2023 press release. 'Through historic investments from President Biden's Investing in America agenda, the Interior Department is helping build modern, resilient climate infrastructure that protects our communities from the worsening impacts of climate change.'The case was appealed to the Court of the Appeals for the Ninth Circuit. The panel of judges heard oral arguments on March 26. An opinion has yet to be released. Adopting the principles of free, prior and informed consent could help to alleviate legal issues like this. The federal government and companies could avoid lengthy and costly legal battles by engaging in this process. 'One thing we see over and over again, and I'm sure everyone in this room is aware that projects will come in, including now renewable energy projects, there will be human rights violations, violations of the right to (free, prior and informed consent), land rights. People will exercise their right to protest and raise concerns about those harms,' said Christine Dodsen, co-lead of the Civic Freedoms & Human Rights Defenders Programme. 'Then there will be a crackdown against human rights defenders, either directly by the company, by governments, and that will then lead... to financial risks, legal risks for the company. For business actors, this model could lead to reduced risks, and a competitive advantage.'The United Nations Permanent Forum on Indigenous Issues will release a report with recommendations, to the United Nations and member states, based on interventions given during the two-week event. It will be released sometime this year. The forum concluded May 2.
Our stories are worth telling. Our stories are worth sharing. Our stories are worth your support. Contribute $5 or $10 today to help ICT carry out its critical mission. Sign up for ICT's free newsletter.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

The global intifada is here. Hamas-aligned networks brought terror to US soil and we need to stop it
The global intifada is here. Hamas-aligned networks brought terror to US soil and we need to stop it

Fox News

timean hour ago

  • Fox News

The global intifada is here. Hamas-aligned networks brought terror to US soil and we need to stop it

For decades, "Globalize the Intifada" chants have rung throughout Europe and the Middle East, a blatant and unmistakable call for violence and terrorism against Israelis and Jews. But over the past two years, those chants have only intensified and multiplied, now making their way west to our United States. What started with campus protests has now turned to vigilante violence. This week in Boulder, Colorado, a man yelling "free Palestine" threw Molotov cocktails at peaceful protestors hosting an event to bring home the Israeli hostages, setting them ablaze. Two young staff members of the Israeli Embassy were murdered outside the Jewish museum, after which the shooter said, "I did it for Palestine, I did it for Gaza." Pennsylvania Governor Josh Shapiro's home was set on fire with his family inside because of "what [Shapiro] wants to do to the Palestinian people," given that he's Jewish. These are not isolated incidents. They are all organized and linked to one group: Hamas. The same terrorist ideology behind these attacks was on display on college campuses over the past two years in the form of violent anti-Israel and anti-Semitic encampments. Let's be clear, these are not the protests of the 1960s. Contrary to what the media may have reported, these were not student-driven "protests" at all. New lawsuits, filed by my organization, expose how the violent takeover of Columbia University's Hamilton Hall and the weeks-long encampments at UCLA were part of an organized, choreographed effort by career professionals to carry out Hamas' plans of violence, terror, and the eradication of Jews and Israelis. At UCLA, a rabbi, a doctor, and a law student sued National Students for Justice in Palestine and other anti-Zionist groups over encampments that were manned with a sword and "human phalanxes." Designated teams of security personnel surrounded the area armed with wooden planks, makeshift shields, pepper spray and tasers. Members of the groups involved in the lawsuit coordinated via social media and Google Docs ways in which to plan, fund, execute, and reinforce the encampment. And just a few days after the first encampment was dispersed by police, more than 40 protestors were found with metal pipes, bolt cutters, chains and padlocks, and manuals for "occupying" campus buildings. At Columbia University, a highly coordinated mob used violent, masked tactics reminiscent of the Ku Klux Klan to storm the campus' Hamilton Hall. Armed with rope, zip ties, and crow bars, the masked invaders smashed their way through the doors and windows, and when they came across two people in their way – janitors, neither of whom were Jewish – they terrorized them, battered them, and mocked them. These two janitors sued the group behind the occupation, the People's Forum, for the assault, during which the assailants berated the janitors as "Jew lovers" for their employment. These aren't doe-eyed kids with signs calling for a more loving and peaceful world. These protestors are part of an expansive terrorist network taking advantage of those same doe-eyed students, using them to stoke violence and create chaos. This is an attempt to legitimize the terrorization of an entire group of people. This is the use of guerrilla warfare tactics against students and faculty in an environment that is supposed to be safe. What we are dealing with now is a highly organized, generously-funded, professionally managed campaign that has all the attributes of a military engagement – from detailed planning to careful mapping to precise logistical elements. This new realization requires a shift in strategy in how we fight back against these attacks. Up until now, most cases against universities were based on a single strategy: to hold taxpayer-funded colleges accountable for the hate that they allowed to become pervasive at their institutions. The goal of this strategy is two-fold. First, colleges should not be permitted to use taxpayer money to fund discrimination, especially when that discrimination prevents students from attending classes. Second, colleges should be incentivized to deal appropriately with the problems on their own campuses, so that neither the government nor lawyers have to handle them one-by-one. These previous cases that held universities accountable for their deliberate indifference to anti-Semitism have worked when they have forced these schools to admit to and confront the rampant anti-Semitism on their campuses. I developed this strategy during my time as the Assistant Secretary for Civil Rights at the United States Department of Education twenty years ago. It underlies the ongoing congressional investigations and enforcement activities by the Office for Civil Rights, and it's similar to the strategy used by the Trump Task Force on Anti-Semitism to root out anti-Semitic harassment in schools. But a lot can change in twenty years, and this is no longer enough. To address this current reality, it is necessary to adopt new strategies to deal with it. We must hold perpetrators accountable for their criminal actions on campus, including both criminal prosecution and civil litigation. But that alone won't be enough. We must also disrupt the perpetrators' support and resources that are helping them to carry out these calculated, coordinated campaigns. In other words, we were previously addressing the symptoms of anti-Semitism by holding universities accountable. Now, we're also getting to the root of the problem by addressing those who fund, support, plan, and enable the anti-Semitic activity. Like the Muslim Brotherhood, which the Colorado attacker supported; the Council on American-Islamic Relations (CAIR), who praised the October 7th attacks; and Students for Justice in Palestine, who continually promote violence on campus and incite "the student intifada." Our protests have changed, just as our reality has. We must be ready to change with it. Kenneth L. Marcus' organization is representing the Columbia janitors and members of the UCLA Jewish community in both lawsuits.

No Supreme Court win, but Mexico pressures U.S. on southbound guns
No Supreme Court win, but Mexico pressures U.S. on southbound guns

Los Angeles Times

time2 hours ago

  • Los Angeles Times

No Supreme Court win, but Mexico pressures U.S. on southbound guns

MEXICO CITY — More than a decade ago, Mexican authorities erected a billboard along the border in Ciudad Juárez, across the Rio Grande from El Paso. 'No More Weapons,' was the stark message, written in English and crafted from 3 tons of firearms that had been seized and crushed. It was a desperate entreaty to U.S. officials to stanch the so-called Iron River, the southbound flow of arms that was fueling record levels of carnage in Mexico. But the guns kept coming — and the bloodletting and mayhem grew. Finally, with homicides soaring to record levels, exasperated authorities pivoted to a novel strategy: Mexico filed a $10-billion suit in U.S. federal court seeking to have Smith & Wesson and other signature manufacturers held accountable for the country's epidemic of shooting deaths. The uphill battle against the powerful gun lobby survived an appeals court challenge, but last week the U.S. Supreme Court threw out Mexico's lawsuit, ruling unanimously that federal law shields gunmakers from nearly all liability. Although the litigation stalled, advocates say the high-profile gambit did notch a significant achievement: Dramatizing the role of Made-in-U.S.A. arms in Mexico's daily drumbeat of assassinations, massacres and disappearances. 'Notwithstanding the Supreme Court ruling, Mexico's lawsuit has accomplished a great deal,' said Jonathan Lowy, president of Global Action on Gun Violence, a Washington-based advocacy group. 'It has put the issue of gun trafficking — and the industry's role in facilitating the gun pipeline — on the bilateral and international agenda,' said Lowy, who was co-counsel in Mexico's lawsuit. A few hours after the high court decision, Ronald Johnson, the U.S. ambassador in Mexico City, wrote on X that the White House was intent on working with Mexico 'to stop southbound arms trafficking and dismantle networks fueling cartel violence.' The comments mark the first time that Washington — which has strong-armed Mexico to cut down on the northbound traffic of fentanyl and other illicit drugs — has acknowledged a reciprocal responsibility to clamp down on southbound guns, said President Claudia Sheinbaum. She hailed it as a breakthrough, years in the making. 'This is not just about the passage of narcotics from Mexico to the United States,' Sheinbaum said Friday. 'But that there [must] also be no passage of arms from the United States to Mexico.' Mexico is mulling options after the Supreme Court rebuff, Sheinbaum said. Still pending is a separate lawsuit by Mexico in U.S. federal court accusing five gun dealers in Arizona of trafficking weapons and ammunition to the cartels. Meanwhile, U.S. officials say that the Trump administration's recent designation of six Mexican cartels as foreign terrorist organizations means that weapons traffickers may face terrorism-related charges. 'In essence, the cartels that operate within Mexico and threaten the state are armed from weapons that are bought in the United States and shipped there,' U.S. Secretary of State Marco Rubio told a congressional panel last month. 'We want to help stop that flow.' On Monday, federal agents gathered at an international bridge in Laredo, Texas, before an array of seized arms — from snub-nosed revolvers to mounted machine guns — to demonstrate what they insist is a newfound resolve to stop the illicit gun commerce. 'This isn't a weapon just going to Mexico,' Craig Larrabee, special agent in charge of Homeland Security Investigations in San Antonio, told reporters. 'It's going to arm the cartels. It's going to fight police officers and create terror throughout Mexico.' In documents submitted to the Supreme Court, Mexican authorities charged that it defied credibility that U.S. gunmakers were unaware that their products were destined for Mexican cartels — a charge denied by manufacturers. The gun industry also disputed Mexico's argument that manufacturers deliberately produce military-style assault rifles and other weapons that, for both practical and aesthetic reasons, appeal to mobsters. Mexico cited several .38-caliber Colt offerings, including a gold-plated, Jefe de Jefes ('Boss of Bosses') pistol; and a handgun dubbed the 'Emiliano Zapata,' emblazoned with an image of the revered Mexican revolutionary hero and his celebrated motto: 'It is better to die standing than to live on your knees.' Compared with the United States, Mexico has a much more stringent approach to firearms. Like the 2nd Amendment, Mexico's Constitution guarantees the right to bear arms. But it also stipulates that federal law 'will determine the cases, conditions, requirements and places' of gun ownership. There are just two stores nationwide, both run by the military, where people can legally purchase guns. At the bigger store, in Mexico City, fewer than 50 guns are sold on average each day. Buyers are required to provide names, addresses and fingerprints in a process that can drag on for months. And unlike the United States, Mexico maintains a national registry. But the vast availability of U.S.-origin, black-market weapons undermines Mexico's strict guidelines. According to Mexican officials, an estimated 200,000 to half a million guns are smuggled annually into Mexico. Data collected by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives illustrate where criminals in Mexico are obtaining their firepower. Of the 132,823 guns recovered at crime scenes in Mexico from 2009 to 2018, fully 70% were found to have originated in the U.S. — mostly in Texas and other Southwest border states. In their lawsuit, Mexican authorities cited even higher numbers: Almost 90% of guns seized at crime scenes came from north of the border. Experts say most firearms in Mexico are bought legally at U.S. gun shows or retail outlets by so-called straw purchasers,who smuggle the weapons across the border. It's a surprisingly easy task: More than a million people and about $1.8 billion in goods cross the border legally each day, and Mexico rarely inspects vehicles heading south. In recent years, the flood of weapons from the United States has accelerated, fueling record levels of violence. Mexican organized crime groups have expanded their turf and moved into rackets beyond drug trafficking, including extortion, fuel-smuggling and the exploitation of timber, minerals and other natural resources. In 2004, guns accounted for one-quarter of Mexico's homicides. Today, guns are used in roughly three-quarters of killings. Mexican leaders have long been sounding alarms. Former President Felipe Calderón, who, with U.S. backing, launched what is now widely viewed as a catastrophic 'war' on Mexican drug traffickers in late 2006, personally pleaded with U.S. lawmakers to reinstate a congressional prohibition on purchases of high-powered assault rifles. The expiration of the ban in 2004 meant that any adult with a clean record could enter a store in most states and walk out with weapons that, in much of the world, are legally reserved for military use. 'Many of these guns are not going to honest American hands,' Calderon said in a 2010 address to the U.S. Congress. 'Instead, thousands are ending up in the hands of criminals.' It was Calderón who, near the end of his term, ventured to the northern border to unveil the massive billboard urging U.S. authorities to stop the weapons flow. His appeals, and those of subsequent Mexican leaders, went largely unheeded. The verdict is still out on whether Washington will follow up on its latest vows to throttle the gun traffic. 'The Trump administration has said very clearly that it wants to go after Mexican organized crime groups,' said David Shirk, a political scientist at San Diego University who studies violence in Mexico. 'And, if you're going to get serious about Mexican cartels, you have to take away their guns.' Special correspondent Cecilia Sánchez Vidal contributed to this report.

Small Michigan auto suppliers face a tariff crisis with thousands of jobs at risk
Small Michigan auto suppliers face a tariff crisis with thousands of jobs at risk

USA Today

time3 hours ago

  • USA Today

Small Michigan auto suppliers face a tariff crisis with thousands of jobs at risk

Small Michigan auto suppliers face a tariff crisis with thousands of jobs at risk Show Caption Hide Caption Appeals court allows Trump tariffs while appeal plays out An appeals court ruled the Trump administration will be allowed to levy tariffs while an appeal on previous court rulings plays out. Michigan auto parts suppliers are struggling with the 25% tariffs imposed by President Trump on imported vehicles and parts. Smaller suppliers are especially vulnerable, facing potential job losses and business closures due to increased costs. Industry experts warn that tariffs could lead to supplier consolidation, potentially driving up prices for consumers. Michigan-based auto parts suppliers are getting creative in their attempts to mitigate President Donald Trump's 25% tariffs on imported vehicles and auto parts. They must, because many industry experts worry the tariffs could put smaller players — which constitute the bulk of auto suppliers — out of business and result in widespread job losses. Take Michigan-based Lucerne International in Auburn Hills, which is looking for the U.S. government to grant it foreign trade zone status to help it delay its tariff bills and free up its cash flow. Another supplier, Team 1 Plastics Inc., is reassessing its business model, including what to do about a much-needed factory expansion that may no longer be affordable. Still others are asking automakers to help foot the bill. 'We've had a lot to think about when you take an industry that is as far-flung as the supply base is in automotive, and then throw in tariffs.' said Gary Grigowski, vice president of Team 1 Plastics, Inc. Adds Lucerne CEO Mary Buchzeiger, "I wake up in the morning and I deal with tariffs. I go to bed and I deal with tariffs. Then the policy keeps changing and when that playbook continuously keeps changing and we don't know what is going to happen two weeks from now … that's a challenge for any industry.' In Michigan, auto parts suppliers are huge employers and contributors to the economy. While experts believe the big suppliers will adapt to tariffs, it's all those smaller companies, such as Team 1 Plastics, which has just 80 employees, that industry observers worry about. In case you missed it: Economists estimate new tariff costs to range between $2,000 to $12,000 per vehicle "University of Michigan economists said tariffs on the auto industry, along with steel and aluminum, can be expected to reduce employment by roughly 13,000 jobs over the next several years. That's a lot of jobs," said Glenn Stevens, executive director of MichAuto. "This is what we've been concerned about because our industry is so tied to Mexico and Canada and the global auto supply chain. We were concerned that the tariff situation would cause an outsized impact on Michigan's economy.' Industry consolidation could drive up prices On May 28, the U.S. Court of International Trade ruled that the president had overstepped his authority in imposing 'reciprocal' tariffs globally, as well as duties on Canada and Mexico. Some in the auto industry said they were encouraged by the ruling, until they realized that the tariffs Trump put on autos still apply, providing no relief from the worry over possible supplier consolidation and job losses. The next day, an appeals court ruled Trump can continue to levy tariffs — which are taxes an importer pays on goods when they cross borders — while challenging the court order that had blocked them. Stevens said there are 'absolutely conversations going on' between suppliers and their customers, including automakers, about ways to shoulder the extra tariff costs together. 'When you have a tremendous increase in costs … that has to either be absorbed by the company, which is very difficult for small suppliers, or passed along to the customer,' Stevens said. 'What we don't want is it passed to the consumer, because that means repressed demand and lower sales, which leads to job losses. It's a fine balancing act.' Other industry experts report that the topic of the day among suppliers is how to remain solvent when faced with the tariffs potentially eating up their operating cash. "We are actively speaking with the tiered supplier community about this topic," said Joe McCabe, CEO of AutoForecast Solutions. "Everyone is taking the tariff talks seriously and looking at ways to improve efficiencies internally and investigate secondary supply strategies. The further down the supply chain you go, the more exposed the supplier will be." McCabe said the Tier 1 suppliers are in the strongest position to adapt to tariffs. They are bigger suppliers that sell directly to automakers. They have a diverse product portfolio to either relocate production and/or pressure the lower-tier suppliers — those companies that sell parts to the Tier 1 supplier — with price-reduction demands while investigating new suppliers in low-to-zero tariff regions. But in times of volatility, there has always been concern that the smaller suppliers will not be able to weather the storm, allowing larger suppliers to buy the distressed suppliers on the cheap and strengthen their product portfolio, McCabe said. As the number of suppliers dwindles, it could allow those that remain to strong-arm carmakers on the prices they pay for the parts, he said. The number of suppliers According to U.S. Census data in 2022, 3,814 firms operated at least one plant classified as producing auto parts in the United States, with a total of 4,846 plants in this industry. Those plants shipped $278.24 billion in parts and employed 575,338 people, said Jason Miller, a supply chain management professor at Michigan State University. Even the small suppliers shoulder big economic muscle. Miller said 3,045 companies with fewer than 100 employees operated 3,111 manufacturing plants that shipped $17.66 billion in parts and employed 54,561 people. In Michigan alone, data from the Upjohn Institute, a nonprofit, nonpartisan research center in Michigan, calculates that the state has 117,675 auto supplier jobs. Team 1: A typical small supplier On an afternoon in mid-May, Grigowski drives down the highway, going from meeting to meeting as he talks on the phone to the Free Press about his ever-growing to-do list to mitigate the impact tariffs will have on his company. The company, Team 1 Plastics in Albion, Michigan, is a small supplier, bringing in about $20 million in annual revenue. Its size represents the bulk of companies that make up the auto parts supplier base, Grigowski said. "We're little companies in little towns," Grigowski said. "We employ 80 people, so it's a big deal in a town of 7,000. And we have one location, so we're making decisions that impact everything." Team 1 makes the plastic vehicle parts such as covers, switch components or underhood components. Its business is "almost 100% automotive with a little bit of plumbing," Grigowski said. It provides parts to suppliers that eventually end up on vehicles made by General Motors, Ford Motor Co., Stellantis, Toyota, Honda and Subaru, he said. The parts they make are links in the complex supply chain that weaves across North America. The good news for Team 1 is that some of the materials it uses to make plastic parts are made in the United States, so the company dodges paying tariffs there. But dies used to make other parts will face tariffs and have "a very big impact" on the company's books, Grigowski said. Team 1's troubles Grigowski said the dies, which are used to shape or form plastic into the parts, are made from suppliers in Canada and India. India is subject to a 10% tariff, but Canada and Mexico got 25%. "That was a big surprise for us — 25% is a lot," Grigowski said. "A typical die cost might be $70,000, so that's going to be $17,500 more. So it's a lot of money. We typically get 10 dies a year from Canada, so that's $175,000 more. That's real money were I come from.' Grigowski said it is unclear whether the dies will be exempt from the Canada tariffs for being compliant with the U.S-Mexico-Canada Agreement because it is not a part, but rather a piece of capital equipment. "It's unclear if that will be covered or not" under the exemption, Grigowski said. "We will have to figure it out in the next week or so" before putting in new orders. If the dies are not exempt, he said the extra cost for the tariff will be passed onto Team 1's customers. As for the dies Team 1 already ordered before the tariffs were applied, it already had quoted its prices to its customers so it will not raise those prices to offset the added expense. He said some companies in Michigan make dies, but they don't have enough capacity to meet all the suppliers' needs. And, as those companies get busier, they will raise their prices too. On top of that problem, Team 1 also needs a new injection molding machine, which is made in Japan. Grigowski ordered a new one even though the 24% tariff on goods coming from Japan tacks on $72,000 to its price tag. He is hoping the tariff on Japan will be lowered to 10%, bring down the bill to $30,000. It would be less of an impact, "but it's still painful," he said. Finally, because Team 1 has added new clients in recent years, it has outgrown its facilities and needs to make a 50% expansion to its plant. It got a construction quote six months ago and had hoped to break ground this summer. But Grigowski said he has to get a new quote now because of the recently imposed 25% tariffs on imported steel and aluminum. "We're using an American company and an American building supplier and they will use as many American parts as they can, but they will probably import some of the steel and even if they didn't, the domestics will raise their price because they can," Grigowski said. "So it's a lot of things for a company our size to keep track of." He said it's a tough situation that feeds his bigger fear, which is "nothing we hear sounds like it's going to lower the price of the car.' "Cars are already super pricey for most customers," Grigowski said. According to Cox Automotive, in April the average transaction price for a new car was $48,699. "Which means, it could lead to lower volumes for us. Lower volume is never good.' A bigger supplier's strategies Across the state in Auburn Hills, Lucerne International, which makes chassis, powertrains and body structural components for passenger cars and commercial vehicles, is a bigger supplier at the tier one and tier two levels. CEO Buchzeiger declined to provide Lucerne's annual revenue or employee count, but she has been grappling with Trump tariffs since 2018 because of Lucerne's scale and reach into Asia. Trump was threatening to boost tariffs on China to 25% back then too. So she has learned a thing or two about mitigating tariffs that she's willing to pass on to smaller suppliers to help them. "The biggest issue with the supply base, especially with paying more cash up front, is cash flow and liquidity," Buchzeiger said. "The smaller suppliers can't pay that up front … it sucks cash flow out of your organization." Buchzeiger said her company has been working to get more of its supplies from domestic providers. She shares other strategies, such as what to do when the goods clear a port, as duties are due within seven to 10 days. Sometimes, the goods "aren't even at our door yet and the tariffs are due," Buchzeiger said. To offset that problem, Lucerne signed up for a U.S. Customs and Border Protection program called Periodic Monthly Statement, Buchzeiger said. That program allows a company to pay all the tariffs on the 15th of the month. So if the parts clear the border on the 16th, the company has a full month to pay it, she said. Buchzeiger said the company is also applying to be a foreign trade zone. "That allows us to bring the goods in and sit on them and not pay duties until they clear our door because we're considered a foreign trade zone," Buchzeiger said. "It's just to save millions of dollars in our cash flow because the longer we hold onto our money, the better." Buchzeiger agrees with the president's goal that more goods should be made in America. But she said to make that happen, tariffs have to be executed strategically. The U.S. aluminum manufacturers, for example, can produce only 15% of the aluminum her company requires, she said. So Lurcerne has to import 85% of it. With the 25% tariffs on aluminum now, "you just made me uncompetitive to manufacture here. To help me manufacture here, you have to understand where raw materials come from.' Find 'a path out' Like Grigowski, Buchzeiger believes tariffs will raise new vehicle prices. Buchzeiger is on the board for MEMA and MichAuto and she said the expectation is tariffs will drive up the average price of a new car by $5,000 to $7,000. As for the impact on jobs, MEMA, the group that represents the auto parts supplier industry, told the Free Press it did not have a precise estimate for supplier job losses so far due to tariffs. But it referred to the Bureau of Labor Statistics' April report that noted a national net decline of 5,800 U.S. jobs in motor vehicle and parts production since February. The bureau does not distinguish between parts and vehicle manufacturing. In March, steelmaker Cleveland-Cliffs Inc. said it would idle some operations at its Dearborn plant this summer, tied to tariffs. It said it will lay off about 600 employees. In a statement at the time, the company said, 'We believe that, once President Trump's policies take full effect and automotive production is re-shored, we should be able to resume steel production at Dearborn Works.' But MEMA spokesperson Megan Gardner said that based on its internal surveys, a growing number of MEMA's 1,000 members have reported reducing U.S. employment — both production and nonproduction — and investment since the tariffs went into effect. She said many indicated they expect to make further cuts if tariffs remain in place over the next year. Still, Grigowski said he is sticking to his plan to hire a couple people this fall to work on that new machine from Japan. He even sees a potential upside to tariffs if some work that is currently done in Mexico shifts over to Team 1. 'That's a very real possibility," Grigowski said. "We've had some additional inquiries from a Canadian company." He also believes the Trump administration will negotiate tariffs country by country and come up with something workable for the auto industry, creating a "path out" of his problems. "It's like COVID. When it first happened, we thought we'd have to shut our plant down. Then we saw a path out," Grigowski said. "Ultimately, if these tariffs were to stay in place and they drove volumes down dramatically, then yeah, we'd have to make adjustments. We have to hope cooler heads will prevail. We're in a good financial position that we can wait for a solution. I feel like it's a significant problem, but a problem we can start to work.' Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@ Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store