Tariffs paused for Canada, Mexico, in place for China; NIADA monitors impact

The Trump administration paused its plans to implement tariffs up to 25 percent on goods from Canada and Mexico until March 4, while pushing ahead with 10 percent tariffs on items from China.

The auto industry is researching the impact of the tariffs on the industry, including auto parts. NIADA continues to monitor developments and speak with its lobby firm in Washington, D.C., about the potential impact on dealers.

The proposed tariffs on Canada and Mexico were supposed to go into effect Feb. 4. President Donald Trump paused the tariffs citing progress at both borders on illegal immigration.

Cox Automotive estimated the North American tariffs would have a dramatic impact on the industry.

“On a trade basis, our team has estimated that 25 percent tariffs at the border of Canada and Mexico would have impacted $309 billion in trade in 2024, or roughly 40 percent of the U.S. new vehicle market. Our analysis does not include the impact on parts, which would be significant indeed and also directly impact auto repair shops across the U.S.,” said the Cox Automotive report.

The rising cost of auto parts from China, Canada and Mexico is a concern for independent auto dealers, who are already facing increased recon costs.

The Automotive Body Parts Association are sending out warnings of increased prices, supply chain delays and trade uncertainty.

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