Ahead of the Curve: Q1 2025 President's Update

As the first quarter of 2025 comes to a close, it’s clear we are experiencing a significant paradigm shift—not only in our political climate, but in how trade, manufacturing, and economic competitiveness are being discussed across the United States.

At MEMA, we have long supported a strong manufacturing base in this country and will continue to champion policies that sustain and grow the automotive supply chain across North America. We appreciate the renewed focus on bringing manufacturing and critical supply chains back into the region—an objective that aligns with our mission and the needs of our members.

What’s important, however, is how we go about strengthening that base. For our members, one thing remains clear: preserving the United States-Mexico-Canada Agreement (USMCA) and ensuring free and fair trade within North America is essential. The economies of the U.S., Canada, and Mexico have become deeply integrated, forming a resilient, efficient, and globally competitive automotive supply chain. Disrupting this would be counterproductive at a time when our sector is already navigating significant challenges and transitions.

This was a central theme during our recent MEMA Original Equipment Suppliers Group Board meeting in mid-March, where we reaffirmed our strong position that trade within North America must remain open and free for the automotive sector. The board is aligned in its belief that a protected and collaborative trade environment is not only beneficial but essential to our industry’s continued success and competitiveness.

Looking ahead, we must also acknowledge that 2025 will be a year of uncertainty and complexity. We expect to see increased attention on tariffs, evolving emissions regulations, and continued momentum toward electrification. Each of these shifts brings potential disruptions—but also important opportunities to elevate the voice and value of our industry.

Consider this: the motor vehicle parts supplier industry is the largest employer of manufacturing jobs in the United States, directly employing over 930,000 Americans. Our sector contributes 2.5% of U.S. GDP, and our products are essential to every stage of vehicle production, from internal combustion to electric drivetrains. This economic impact strengthens our ability to advocate for smart, targeted policies—such as incentives to support reshoring and investment in U.S.-based manufacturing.

To support our members through this period, MEMA has established a clear and deliberate process for advocacy:

1. We inform – delivering timely, factual updates on policy developments and market shifts through our councils, committees, and communications.
2. We understand – working with members to assess how these changes affect your operations, your customers, and the broader economy.
3. We educate – both by briefing elected officials and agencies through our Government Affairs team, and by equipping our members with actionable insights to navigate a changing landscape.

On March 26, the White House announced plans to impose a 25% tariff on imported vehicles as well as selected auto parts. The tariff on vehicles will go into effect on April 3, 2025 while the implementation date for the tariffs on auto parts has yet to be determined but is expected to occur on or before May 3, 2025. Although there are some exemptions slated for USMCA-qualifying vehicles and parts, the requirements are not yet clear and could introduce additional complexity for suppliers and OEMs. Our team, together with the MEMA Trade Working Group, is actively analyzing the impact, engaging with policymakers, and coordinating the industry’s strategy and response.

I’m especially proud of the work our team has done in the first quarter. Through weekly touchpoints with our Trade Working Group, OE working groups, and council meetings, we’ve kept members up-to-date and engaged. Meanwhile, our advocacy team continues to meet with Administration officials, Members of Congress and Congressional staff as well as peer associations to ensure that the voice of suppliers are heard and understood at every level of government.

Thank you for your continued engagement. As we move through this pivotal year, MEMA is committed to being your voice, your partner, and your advocate.