MEMA represents 1,000 companies manufacturing auto parts in the U.S., and the association says it has communicated clearly to the administration that tariffs on imported steel and aluminum will hurt the 871,000 Americans the association’s members employ – the largest sector of manufacturing jobs in the U.S. Many specialty steel and aluminum materials imported by motor vehicle suppliers are used by hundreds of vehicle parts manufacturers operating in an integrated, complex global supply chain. Suppliers’ access to these specialized products – which are often only available from one or two sources in the world – is critical to the industry and our national economy.
The association says it is important to see this action in the larger trade environment created by the Trump administration. Auto parts manufacturers are facing trade challenges and uncertainties on several fronts now – including North American Free Trade Agreement (NAFTA) renegotiations, Section 232 investigations into automobiles and automotive parts, Section 301 tariffs on Chinese imports and the Section 232 tariffs on steel and aluminum, now including Canada, the EU and Mexico, with confusing processes of exclusions and quotas.
MEMA’s members could face having to pay double tariffs on some materials necessary to manufacture parts in the U.S. Industries like the automotive aftermarket, which require long-term investments in facilities and employees, depend on regulatory and market stability. These actions have thrown all of that up in the air, says MEMA. There is little doubt that the uncertainty and added costs the administration is creating will put U.S. investments and jobs at risk, according to the association.
MEMA has worked closely with the Trump administration to expand jobs and to increase U.S. competitiveness. MEMA supports the Trump administration’s agenda to assure fair and reciprocal trade; and, MEMA concurs that national security depends on the economic security of the country. Motor vehicle parts manufacturers are a critical element of this agenda, the association says.
For more information on the Section 232 tariffs, visit MEMA’s Trade Resources Page.