MEMA Statement on Newly Enacted Tariffs on Canada, Mexico, and China

Washington, D.C. – Yesterday, President Trump enacted 25% tariffs on imports from Canada and Mexico and increased tariffs on goods from China and Hong Kong to address critical challenges concerning Canadian and Mexican border security as well as the influx of synthetic opioids. These tariffs create a significant risk to vehicle suppliers.  

“The community of vehicle suppliers remains fragile from years of industry volatility, workforce shortages, supply chain disruption and the pandemic. Tariffs of this scale place a significant burden on U.S. manufacturers, increasing costs, reducing profitability, impacting American jobs and the industry’s ability to compete globally,” said Bill Long, President and CEO of MEMA, The Vehicle Suppliers Association.  

Vehicle suppliers operate in all 50 states and are essential to the US economy, representing the largest sector of manufacturing jobs in the U.S. The tariffs have raised profound concerns across the sector placing additional pressure on the already-fragile supplier industry and its ability to operate absorb the costs, businesses, grow and invest.  

A recent MEMA survey¹ highlights industry sentiment regarding the tariffs:  

• 82% of suppliers say tariffs on goods from Mexico will have a negative impact on their business.  
• 68% of suppliers say tariffs on goods from Canada will harm operations.  
• During the first month of tariffs, suppliers anticipate: cutting or delaying investments (24%), modifying supply chains (21%), cutting U.S. jobs (13%)  
• By six months, these impacts are expected to increase significantly: cutting or delaying investments (57%), modifying supply chains (75%), cutting U.S. jobs (47%), shifting production outside the U.S. (33%) 

The vehicle supplier industry operates within a deeply integrated North American supply chain, with components frequently crossing borders multiple times before final assembly. The United States-Mexico-Canada Agreement (USMCA) was designed to facilitate regional trade and support economic stability, and these new tariffs represent an unexpected shift for suppliers.

1 MEMA OE and MEMA Aftermarket executive members were invited to take part in a survey focused on the tariffs announced on February 1. The survey was open from February 3-6, 2025. A total of 203 responses were captured, representing Original Equipment Light Vehicle and Commercial Vehicle members, and Aftermarket Light Vehicle and Commercial Vehicle Members. Firms represent an equal distribution in terms of sales and employment. 

About MEMA
MEMA, The Vehicle Suppliers Association, is the leading trade association in North America for vehicle suppliers, parts manufacturers, and remanufacturers. It has been the voice of the vehicle supplier industry since 1904. Its more than 1,000 members are Strong by Association.

Companies join MEMA via two membership groups: MEMA Aftermarket Suppliers and MEMA Original Equipment Suppliers. Automotive and commercial vehicle suppliers are the largest manufacturing sector in the United States and lead the way in new vehicle innovations.

Members conceive, design, and manufacture the OE systems and technologies that make up two-thirds of the value of every vehicle and supply the aftermarket with the parts that keep millions of vehicles on the road, fueling international commerce and meeting society’s transportation needs. MEMA members are committed to safety and sustainability.
 
MEMA has offices in Southfield, Mich.; Research Triangle Park, N.C.; and Washington, D.C. Learn more at MEMA.org. 

MEMA is eager to continue its collaboration with the administration to achieve the common goals of U.S. job growth and increased competitiveness, globally.