Six trade groups representing automakers and the aftermarket have written to the Departments of the Treasury and Commerce asking that regulations to implement President Donald Trump’s 25% tariff on imported automotive parts allow them more time to reroute supply chains.
A 25% tariff on assembled vehicles imported into the U.S. went into effect on April 3, and a 25% tariff on some parts is set to begin May 3.
“As you know, existing automotive supply chains are global and complex. They are also exceedingly fragile,” the April 21 letter states. “Tariffs on auto parts will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships, and will make servicing and repairing vehicles both more expensive and less predictable. Most auto suppliers are not capitalized for an abrupt tariff-induced disruption. Many are already in distress and will face production stoppages, layoffs, and bankruptcy.”
The groups that sent the letter are the Alliance for Automotive Innovation, American Automakers AAPC, American International Automobile Dealers Association (AIADA), Autos Drive America, Motor & Equipment Manufacturers Association (MEMA), and the National Automotive Dealers Association (NADA). Their letter is also addressed to U.S. Trade Representative Jamieson Greer.
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