WASHINGTON, D.C. -- MEMA represents 1,000 companies manufacturing auto parts in the U.S., and we have communicated clearly to the administration that tariffs on imported steel and aluminum will hurt the 871,000 Americans our 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.
It is important to see today’s 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 a concomitant and confusing processes of exclusions and quotas.
Our members could face having to pay double tariffs on some materials necessary to manufacture parts in the U.S. Industries like ours, 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. There is little doubt that the uncertainty and added costs the administration is creating will put U.S. investments and jobs at risk.
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.
For more information on the Section 232 tariffs, please visit MEMA’s Trade Resources Page.
The Motor & Equipment Manufacturers Association (MEMA) and its four specialized divisions comprise a leading international trade association in the fast-changing mobility industry. Representing vehicle suppliers that manufacture and remanufacture components, technologies, and systems for use in passenger cars and heavy trucks, MEMA serves as a critical bridge between high-tech capabilities in new vehicles –such as autonomous vehicles and vehicle connectivity—and the “nuts and bolts” of vehicle manufacturing. MEMA works at state, federal, and international levels to ensure that the marketplace and public policy support the development of advanced, transformative technologies that enable safer, smarter, and more efficient vehicles. MEMA’s members are represented through four divisions: Automotive Aftermarket Suppliers Association (AASA), Heavy Duty Manufacturers Association (HDMA), Motor & Equipment Remanufacturers Association (MERA), and Original Equipment Suppliers Association (OESA). For more information on how MEMA is leading transformation in the mobility industry, visit www.mema.org.
Subscribe to Aftermarket Business World and receive articles like this every month….absolutely free. Click here.