Tariffs proposed by the incoming Trump administration have garnered criticism from the Auto Care Association in a recent press release.
In addition to calling for a 25% tariff on all goods imported from Mexico and Canada, and an additional 10% on imports from China, Trump has now threatened a 100% tariff on imports from Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates in the event they create a new BRICS currency, or back any currency that may challenge the U.S. dollar.
With Mexico and Canada having comprised 58% of auto parts imports and 76% auto parts exports in 2023, the two countries are the largest trading partners to the U.S. ACA has argued that the current trade relationship between the three countries enables mutually beneficial supply chains, and affordable parts for U.S. consumers and shops.
Additionally, some parts of the supply chain cross the border multiple times during production before the product makes its way to the end user, ACA added.
ACA also compiled a list of the top product categories imported from Mexico, which includes certain ignition wire sets, seat parts, brake systems and components, gearboxes, catalytic converters, suspension shock absorbers and parts, spark-ignition reciprocating piston engines, and automotive air conditioning parts.
Top product categories imported from Canada are certain spark-ignition reciprocating piston engines, gearbox parts, suspension system parts, and clutch parts.
With cost of repair already being the top roadblock to consumers seeking automotive service, according to the 2025 Auto Care Factbook, a potential 25–100% increase in parts will likely result in more drivers postponing necessary service.
Significant financial strain will be imposed on businesses that have to pay tariff costs upfront. For small and medium-sized businesses, ACA warned this may lead to cash flow challenges, delayed payments, reduced capacity and inventory, and potentially having to scale back operations.
“With the sting of inflation still being felt by many Americans, the Auto Care Association supports the incoming Trump administration’s goal of achieving fair trade and we strongly encourage the incoming Trump administration to pursue trade measures that will help to lower everyday costs for Americans,” ACA said in its statement.
