Trump tariffs urge U.S. auto production. Here’s why that’s complicated

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Ford Motor Company’s electric F-150 Lightning on the production line at its Rouge Electric Vehicle Center in Dearborn, Michigan, on Sept. 8, 2022. Jeff Kowalsky | AFP | Getty Images DETROIT – When President Donald Trump hinted last week at a reprieve from 25% auto tariffs, he suggested it would be to allow automakers more time to move or increase U.S. vehicle production and parts. “They need a little bit of time because they’re going to make them here,” Trump said April 14. “But they need a little bit of time, so I’m talking about things like that.” While automotive executives and experts agree more time would be helpful, an extension to bolster U.S. manufacturing isn’t so simple. For one thing, an additional 25% auto parts tariff is scheduled to take effect by May 3, which would raise the cost of a vehicle even if it’s assembled stateside rather than imported. And for another, automakers and suppliers don’t simply “move” plants, like some politicians have called for. Relocating production lines takes years of planning and construction — and can be costly. The actual construction of an assembly plant has to be done in conjunction with hiring workers, building infrastructure such as water and energy supplies and building out a parts supply chain, among other considerations. That’s after site determination, purchasing and any potential changes to zoning. Such facilities, like a new 16-million-square-foot plant from Hyundai Motor, in Georgia, can require thousands of acres of land and include millions of square feet of factory space. “All of those things have to fall in place,” said Doug Betts, an auto industry veteran who’s president of J.D. Power’s automotive division. “It’s a very, very complicated process.” Permitting alone for a new plant can take six to 12 months. It can take another 12…