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02/04/2025

Auto Care Association Monitoring Impact of Proposed Tariffs

Source: aftermarketNews

The Auto Care Association warned of the potential impacts of the tariffs President-elect Trump may impose against Mexico and Canada. The association explained that the two countries are the U.S. auto care industry’s largest trading partners. They accounted for 58% of auto parts imports and 76% of auto parts exports in 2023.

Tariffs are not paid for by our trading partners; instead, they are passed down the supply chain and are a financial burden on families trying access affordable parts to repair and maintain their vehicles. Delays in vehicle repairs and maintenance pose a safety risk for drivers, passengers and pedestrians, the Auto Care Association said.

Additionally, tariffs are a significant financial strain on businesses that must pay the tariff costs upfront, tying up resources and capital that would otherwise be used for other investments and growing the business, added the Auto Care Association. For small and medium-sized businesses, this could result in cash flow challenges, delayed payments, reduced capacity and inventory, causing businesses to scale back the operations.

Trade with Mexico and Canada  

Mexico		 Imports of Auto Parts in 2023 (USD)
$64.8 billion (47% share of total imports)		 Exports of Auto Parts in 2023

$20.4 billion (40% share of all exports)
Canada $16.1 billion (12% share of total imports) $18.4 billion (36% share of all exports)
World $138.9 billion $51.2 billion

Source: 2025 Auto Care Factbook, U.S. Trade Data by Country, NAICS 3363, pg. 152

Top Product Categories Imported from Mexico include certain:

  • Ignition wire sets
  • Seat parts
  • Brake systems and components
  • Gearboxes
  • Catalytic converters
  • Suspension shock absorbers and parts
  • Spark-Ignition Reciprocating Piston Engines
  • Automotive air conditioning parts

Top Product Categories Imported from Canada include certain:

  • Spark-Ignition Reciprocating Piston Engines
  • Gearbox parts
  • Suspension system parts
  • Clutch parts

With the average price for catalytic converters currently ranging from several hundred to several thousand dollars in the United States, an American vehicle owner in need of a catalytic converter replacement could see that cost jump with a 25% tariff on parts from Mexico and Canada being passed on to the customer, according to the Auto Care Association.

Click here to read the entire news release from the Auto Care Association.

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