Ahead of the Curve: Q2 President's Update

As mobility suppliers we know that no part is too small and that vehicle suppliers are a “Big Part” of what moves America forward. Yet, as we move through 2025, the pressure on vehicle suppliers continues to mount—from escalating tariffs to erratic regulatory shifts and tightening financial conditions. The compounding effect of these disruptions is placing real strain on the businesses that form the foundation of our nation’s mobility and manufacturing strength.

Section 232 tariffs remain in place for automobiles, components, steel, and aluminum, while new proposals target commercial vehicle parts, semiconductors, and critical minerals. Export controls on tech inputs, unpredictable EPA rulemaking, and constrained access to capital are further complicating the operating environment. These aren’t abstract policy debates—they are immediate and tangible challenges impacting supplier margins, investment capacity, and workforce stability.

Vehicle suppliers, operating on average margins of less than 7%, are being asked to do more with less: manage tariffs, invest in domestic capacity, and maintain a 930,000-strong workforce. This sector wasn’t built to weather this level of disruption alone.

At MEMA, we are not standing still. Our team is deeply engaged with decision-makers across Washington and our Industry. Since the start of this administration, we’ve held more than 75 meetings with congressional offices, senior White House officials, and international trade leaders. We’ve organized supplier fly-ins, coordinated with OEMs, and submitted multiple letters directly to the President calling for pragmatic trade policy.

Our advocacy strategy is twofold:

• Immediate Relief: We’re pushing for actionable solutions—temporary tariff flexibility, supplier tax credits, liquidity access, and tariff refund mechanisms—to stabilize suppliers in the short term.
• Long-Term Competitiveness: We’ve outlined proposals to reduce barriers to domestic investment, including tariff exemptions for critical tooling, targeted incentives for reshoring, and a pro-manufacturing tax framework to spur innovation and rebuild U.S. supply chains.

We’re also investing in platforms that connect members directly with policymakers. In May, we brought suppliers to D.C. for high-impact agency meetings and Capitol Hill discussions. More fly-ins and roundtables are on the horizon. Our member engagement continues through supplier town halls, webinars, and working groups—all focused on ensuring your voices shape the policies that shape your future.

This is a moment that requires clarity, coordination, and courage. MEMA is committed to delivering all three. Whether through direct advocacy, strategic coalitions, or thought leadership, we are making sure that the supplier perspective isn’t just heard—it’s prioritized.

Thank you for continuing to play a “Big Part” in our partnership and engagement.

Collin Shaw

President, MEMA OE