Car Parts Sellers Cut Workers as Tariffs Wreak Havoc on Sales

Elena Morales, the president of SMT Automation, had been preparing for a big year at the tiny Michigan maker of manufacturing machinery.

Morales had purchased a new building and hired staff in anticipation of installing more equipment on automotive assembly lines. Her customers, who are some of the biggest automakers and parts suppliers in the US, had asked her if SMT would have capacity to take on more business.

Then, President Donald Trump’s tariffs hit, and everything changed.

SMT makes automated equipment for assembly lines for vehicles and parts. Instead of ordering tools that would make components for future ...