MEMA, The Vehicle Suppliers Association, and Auto Care Association reinforced their opposition to President Trump’s proposed 25% tariffs on goods from Mexico and Canada. According to MEMA, the Trump 25% tariffs will place additional pressure on the supplier industry and impede the ability of supplier companies to grow, invest, and operate their businesses. Auto Care Association’s President and CEO Bill Hanvey also expressed his disagreement with the tariffs, saying they will have a direct and negative impact on American businesses and consumers.

Editors Note: As of Monday, Feb. 3, President Trump and President Claudia Sheinbaum of Mexico agreed to delay the proposed tariffs by one month.

Effect on American Jobs and Manufacturing

The vehicle supplier industry is the backbone of U.S. manufacturing, supporting over 930,000 American jobs. Tariffs of this magnitude will drive up costs for manufacturers, reduce investment in U.S. production, and force job losses across the industry, MEMA said. The United States-Mexico-Canada Agreement (USMCA), negotiated by President Trump and supported by MEMA, was designed to provide certainty and promote regional manufacturing. According to MEMA, the Trump 25% tariffs will undermine this critical framework, creating economic uncertainty and deterring growth.

Higher Costs for Manufacturers and Consumers

A 25% tariff will significantly increase the cost of essential vehicle components, MEMA said. Manufacturers will inevitably pass down those added costs to consumers. Inflation remains a key concern, and such tariffs will further strain household budgets and disrupt affordability in the automotive sector. North American trade is already the largest U.S. export market, supporting millions of American jobs. Undermining this trade with costly tariffs will only weaken U.S. competitiveness and hinder economic stability, according to MEMA.

Supply Chain Resilience and National Security Concerns from Trump 25% tariffs

Canada and Mexico are the United States’ top automotive trade partners. Since the implementation of USMCA, regional trade has grown stronger, reducing reliance on China and reinforcing North American economic security. According to MEMA, Tariffs will upend this progress. They will force companies to reevaluate supply routes and delay production, as well as discourage further investment in emerging technologies, MEMA said.

Tariff Rates and Products

The Executive Orders do not list specific products subject to the tariffs. However, it states that the tariff applies to all goods which are “products of” these countries.

The new tariff rates below apply “in addition to any other duties, fees, exactions or charges” applicable to imported products. These tariffs will be applied on top of any existing import duties or tariffs already in effect.

• Canada: 25% tariff applies to imports from Canada, with energy products subject to a reduced 10% tariff;
• Mexico: 25% tariff applies to imports from Mexico;
• China: 10% tariff applies to imports from China.

MEMA’s Call to Action on Trump 25% tariffs

MEMA urges the administration to lift these tariffs and to prioritize policies that support American manufacturing, economic stability, and competitiveness. It encourages policymakers to work collaboratively with industry stakeholders to strengthen North American trade relationships, rather than imposing punitive measures that will ultimately weaken a key sector of the U.S. economy.

MEMA said it remains committed to advocating for a strong and stable vehicle supplier industry and will continue working with Congress, the Administration, and our industry partners to ensure trade policies that protect American jobs and innovation.

Auto Care Association Leadership Thoughts

Bill Hanvey, president and CEO, Auto Care Association, emphasized the impact the proposed tariffs will have on the automotive aftermarket industry, U.S. consumers, and businesses:

“We understand the importance of national security and the need to address critical challenges, but these tariffs will have a direct and negative impact on American businesses and consumers,” Hanvey said. “Canada and Mexico are our largest trading partners, and together, we make the automotive aftermarket industry more competitive. Our industry relies on highly integrated supply chains that benefit the economies of all three countries, ensuring the availability of affordable vehicle repairs for millions of consumers. These supply chains also create jobs on both sides of the border, supporting a strong and resilient workforce.

“Tariffs and disruptions to these supply chains create inefficiencies, increase costs and weaken our industry’s ability to compete globally. These tariffs will drive up costs for hardworking American families who depend on reasonably priced parts to repair and maintain their vehicles. Tariffs are not paid by our trading partners; they are paid by businesses and consumers here at home. Higher prices and supply chain disruptions will mean delays in essential vehicle repairs, ultimately impacting road safety. We urge all parties to come to the table and negotiate a solution that keeps our industry strong, protects American jobs and ensures American consumers aren’t left paying the price.”