After a reprieve on tariffs on vehicles from Canada and Mexico last week, the Trump Administration pushed ahead with the 25 percent tariff on steel and aluminum imports Wednesday.
The tariffs are expected to have a large impact on the auto industry, from manufacturing to getting parts.
“With our deep American roots and the steel and aluminum content requirements of the USMCA, Ford, GM and Stellantis purchase the vast majority of their steel and aluminum in the United States or North America. We are still reviewing and awaiting all of the details of the tariffs, but revoking the exemption for Canada and Mexico and extending tariffs to auto parts with steel and aluminum will add significant costs for automakers, suppliers and consumers,” said Governor Matt Blunt, president of the American Automotive Policy Council (AAPC) represents American Automakers Ford Motor Company, General Motors Company and Stellantis.
The tariffs on steel and aluminum were announced in early February, with warnings being sent out on the impact to dealers and consumers, with higher prices on vehicle parts.
“The implications of these tariffs are far-reaching. They are expected to increase the cost of imported steel and aluminum, which could lead to higher production costs for manufacturers and potentially result in increased prices for consumers,” said Ed Salamy, Executive Director of the Automotive Body Parts Association. “This price impact would not only affect aftermarket collision repair parts but also OEM parts, both of which rely heavily on these materials sourced from outside of the U.S. As a result, vehicle repair costs are likely to rise, contributing to an increase in total losses declared by insurers — ultimately burdening consumers with higher premiums and replacement costs.”
Auto insurance has been increasing at a rate of nearly 20 percent annually in the past two years.
The administration announced last week it would not impose the auto tariffs on vehicles from Canada and Mexico until April 2.
“We spoke with the Big Three auto dealers. We are going to give a one-month exemption on any autos coming through USMCA,” Trump said in a statement White House Press Secretary Karoline Leavitt read in a White House briefing. “Reciprocal tariffs will still go into effect on April 2. But at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they’re not at an economic disadvantage.”
The administration then delayed the 25 percent tariffs on Canada and Mexico until April 2.
NIADA continues to work with its lobbyists in Washington, D.C., to get the latest information on the tariffs and monitor impact.
