A just-completed MEMA survey of it supplier members states the majority are exposed to the tariffs and lack excess availability capacity and more
Washington, D.C.—MEMA, The Vehicle Suppliers Association, continues to monitor the impact of steel and aluminum tariffs on the vehicle supplier industry.
While MEMA supports efforts to strengthen domestic manufacturing, the changes to the Section 232 steel and aluminum tariffs will impose “significant cost pressures and supply chain challenges that may affect the industry’s long-term competitiveness,” said the association in a statement release Wednesday afternoon.
MEMA is “concerned that ending supply agreements with allied nations and the immediate sunset of the exclusion process will hinder the industry’s ability to secure essential materials. This raises further concerns for vehicle suppliers relying on North American trade integration for cost stability and supply chain efficiency.”
A recent MEMA survey, completed by 139 supplier members from March 6-10 — including original equipment and aftermarket suppliers across both the light vehicle and commercial vehicle sectors — highlights key concerns from the industry.
According to the survey:
- 78% of supplier respondents are exposed to steel tariffs, while 63% are exposed to aluminum tariffs.
- Over 80% of suppliers are exposed to steel and aluminum derivative tariffs, with more than a third facing tariffs on both the materials they import for local production and the products they deliver.
- 97% of supplier respondents expressed concerns about increased distress among sub-tier suppliers due to the announced tariffs.
- 78% of suppliers reported that they do not have excess available capacity in the U.S. to domestically manufacture parts currently sourced through global supply chains.
Vehicle suppliers rely on a globally integrated supply chain to manufacture critical components and require access to specialty materials that are not always readily available in the United States. Steel and aluminum are fundamental inputs for the vehicle supplier sector.
The imposition of 25% tariffs on steel and steel derivatives as well as aluminum and aluminum derivatives from all nations will add complexity and financial strain, potentially limiting investment in domestic production and innovation.
“As an industry, we recognize the importance of strong domestic supply chains,” stated MEMA President and CEO Bill Long. “At the same time, it is essential that trade policies allow suppliers to remain competitive in a global market. We continue to engage with policymakers to ensure these considerations are part of the broader discussion on economic growth and job creation.”
MEMA stated it remains committed to working with policymakers to support trade policies that balance economic stability with the needs of the vehicle supplier industry, and will continue advocating for solutions that promote a strong and competitive supplier industry while ensuring that trade policies support long-term growth and innovation.
Comments are closed.