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MEMA Statement on Ongoing Impact of Steel and Aluminum Tariffs

Date: March 12, 2025

WASHINGTON, D.C. – MEMA, The Vehicle Suppliers Association, continues to monitor the impact of steel and aluminum tariffs on the vehicle supplier industry. While MEMA supports efforts to strengthen domestic manufacturing, the changes to the Section 232 steel and aluminum tariffs will impose significant cost pressures and supply chain challenges that may affect the industry’s long-term competitiveness. MEMA is concerned that ending supply agreements with allied nations and the immediate sunset of the exclusion process will hinder the industry’s ability to secure essential materials. This raises further concerns for vehicle suppliers relying on North American trade integration for cost stability and supply chain efficiency. 

A recent MEMA survey¹, completed by 139 supplier members—including original equipment and aftermarket suppliers across both the light vehicle and commercial vehicle sectors—highlights key concerns from the industry. According to the survey: 

  • 78% of supplier respondents are exposed to steel tariffs, while 63% are exposed to aluminum tariffs. 

  • Over 80% of suppliers are exposed to steel and aluminum derivative tariffs, with more than a third facing tariffs on both the materials they import for local production and the products they deliver. 

  • 97% of supplier respondents expressed concerns about increased distress among sub-tier suppliers due to the announced tariffs. 

  • 78% of suppliers reported that they do not have excess available capacity in the U.S. to domestically manufacture parts currently sourced through global supply chains. 

Vehicle suppliers rely on a globally integrated supply chain to manufacture critical components and require access to specialty materials that are not always readily available in the United States. Steel and aluminum are fundamental inputs for the vehicle supplier sector. The imposition of 25% tariffs on steel and steel derivatives as well as aluminum and aluminum derivatives from all nations will add complexity and financial strain, potentially limiting investment in domestic production and innovation. 

“As an industry, we recognize the importance of strong domestic supply chains,” said MEMA President and CEO Bill Long. “At the same time, it is essential that trade policies allow suppliers to remain competitive in a global market. We continue to engage with policymakers to ensure these considerations are part of the broader discussion on economic growth and job creation.” 

MEMA remains committed to working with policymakers to support trade policies that balance economic stability with the needs of the vehicle supplier industry. 

MEMA will continue advocating for solutions that promote a strong and competitive supplier industry while ensuring that trade policies support long-term growth and innovation. 

¹ MEMA OE and MEMA Aftermarket executive members were invited to take part in a survey focusing on the tariffs. The survey was open from March 6-10, 2025. A total of 139 responses were captured, representing Original Equipment Light Vehicle and Commercial Vehicle members, and Aftermarket Light Vehicle and Commercial Vehicle Members. Firms represent an equal distribution in terms of sales and employment. 

 

About MEMA

MEMA, The Vehicle Suppliers Association, is the leading trade association in North America for vehicle suppliers, parts manufacturers, and remanufacturers. It has been the voice of the vehicle supplier industry since 1904. Its more than 1,000 members are Strong by Association.

Companies join MEMA via two membership groups: MEMA Aftermarket Suppliers and MEMA Original Equipment Suppliers. Automotive and commercial vehicle suppliers are the largest manufacturing sector in the United States and lead the way in new vehicle innovations.

Members conceive, design, and manufacture the OE systems and technologies that make up two-thirds of the value of every vehicle and supply the aftermarket with the parts that keep millions of vehicles on the road, fueling international commerce and meeting society’s transportation needs. MEMA members are committed to safety and sustainability.

MEMA has offices in Southfield, Mich.; Research Triangle Park, N.C.; and Washington, D.C. Learn more at MEMA.org.

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