MEMA, The Vehicle Suppliers Association has slammed the impending tariff implementation from the White House on Canada and Mexico and calling on the U.S. federal government to remove them.
The group, which includes MEMA Aftermarket Suppliers, said 25 per cent tariffs on Canadian and Mexican goods “will place additional pressure on the supplier industry and impede the ability of supplier companies to grow, invest, and operate their businesses.”
It highlighted that the USMCA — which was created during President Donald Trump’s first term in the White House — provides certainty within the industry and emphasizes regional manufacturing.
“These tariffs will undermine this critical framework, creating economic uncertainty and deterring growth,” MEMA said in a statement sent Friday afternoon.
MEMA noted that the vehicle supplier industry is critical to manufacturing in the U.S. “Tariffs of this magnitude would drive up costs for manufacturers, reduce investment in U.S. production, and force job losses across the industry,” it said.
The group highlighted the financial challenges facing consumers and that costs added on by tariffs would only do damage as added costs would be passed down to them.
“At a time when inflation remains a key concern, such tariffs would further strain household budgets and disrupt affordability in the automotive sector.”
Regional trade has increased, reducing reliance on China, MEMA noted. Canada and Mexico are the top trading partners in the automotive space for the U.S., it added.
“Tariffs would upend this progress, forcing companies to reevaluate supply routes and delay production, as well as discourage further investment in emerging technologies,” the statement pointed out.
MEMA said it will continue to advocate on behalf of the automotive supplier industry to ensure any trade policies protect jobs and innovation.
“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,” it said.
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