MEMA statement on proposed 25% tariffs on goods from Mexico and Canada

MEMA, The Vehicle Suppliers Association, echoes the profound concerns expressed by sectors across the U.S. economy and reinforce our opposition to a 25% tariff on goods from Mexico and Canada which will place additional pressure on the supplier industry and impede the ability of supplier companies to grow, invest, and operate their businesses.

Such tariffs would have severe consequences for the U.S. vehicle supplier industry, jeopardizing American jobs, increasing costs for consumers, and undermining the highly integrated North American supply chain that is critical to U.S. competitiveness.

A Direct Threat to 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 would drive up costs for manufacturers, reduce investment in U.S. production, and force job losses across the industry. The United States-Mexico-Canada Agreement (USMCA), negotiated by President Trump and supported by MEMA, was designed to provide certainty and promote regional manufacturing. These tariffs will undermine this critical framework, creating economic uncertainty and deterring growth.

Higher Costs for Manufacturers and Consumers

A 25% tariff would significantly increase the cost of essential vehicle components, with those added costs inevitably passed down to consumers. At a time when inflation remains a key concern, such tariffs would 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 would only weaken U.S. competitiveness and hinder economic stability.

Undermining Supply Chain Resilience and National Security

Canada and Mexico are the United States’ top automotive trade partners, forming the backbone of a resilient, North American-centered supply chain. Since the implementation of USMCA, regional trade has grown stronger, reducing reliance on China and reinforcing North American economic security. Tariffs would upend this progress, forcing companies to reevaluate supply routes and delay production, as well as discourage further investment in emerging technologies.

MEMA’s Call to Action

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

MEMA 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.