The Auto Care Association expressed concern over potential tariffs the incoming Trump Administration has planned.
According to a press release, President-elect Donald Trump's proposed tariffs on imports from Mexico, Canada, China, and BRICS nations could unleash a potentially devastating $100 billion economic shock to the automotive parts industry, with consumers facing significant price increases for vehicle repairs.
In a plan announced on his Truth Social platform, Trump proposed a 25% tariff on imports from Mexico and Canada and a 10% additional tariff on Chinese imports. He further threatened a potentially crippling 100% tariff on imports from BRICS countries if they challenge the U.S. dollar's global dominance.
Industry Impact
The ACA warns these tariffs would create substantial economic challenges. Mexico and Canada are critical trading partners, currently accounting for 58% of auto parts imports and 76% of auto parts exports in 2023.
"Tariffs are not paid for by our trading partners," the association emphasized. "Instead, they are passed down the supply chain and become a financial burden on families trying to access affordable parts to repair and maintain their vehicles."
Potential Consequences
Key concerns include:
- Dramatic price increases for automotive parts
- Potential safety risks from delayed vehicle maintenance
- Cash flow challenges for small and medium-sized businesses
- Disruption of integrated North American supply chains
The average cost of critical components like catalytic converters could spike significantly. With prices currently ranging from hundreds to thousands of dollars, a 25% tariff could push these expenses even higher.
Consumer Trends
The proposed tariffs come at a challenging time. Recent data shows vehicle maintenance delays have already increased, rising from 21.6% in 2021 to 25.1% in 2023, primarily due to repair costs.
While supporting the goal of fair trade, the Auto Care Association urges the incoming administration to pursue measures that will lower costs for American consumers.
The organization has pledged to closely monitor these developments and keep industry members informed of potential impacts.
