ABPA MEMBER ALERT: President Trump Imposes Sweeping Tariffs – Impact on Aftermarket Parts Industry & Global Supply Chains

Dear ABPA Members,

On Saturday, February 1, 2025, President Trump issued executive orders imposing significant tariffs on imports from Canada, Mexico, and China under the International Emergency Economic Powers Act (IEEPA). The administration cited a national emergency related to illegal immigration and the flow of illicit drugs as justification for these sweeping trade measures.

While national security concerns are important, these tariffs could introduce new challenges for the aftermarket parts industry and the consumers we serve. Many ABPA members rely on a well-integrated global supply chain to provide affordable, high-quality replacement parts. Even if members are sourcing from countries not currently subject to these new tariffs, the broader impact on global trade flows, shipping costs, and supply chain adjustments could still affect pricing and availability. Businesses should remain vigilant as these policies unfold.

What This Means for ABPA Members

🔹 Tariff Rates & Affected Countries

Canada: 25% tariff on imports, with energy products subject to a reduced 10% tariff.
Mexico: 25% tariff on imports.
China: 10% tariff on imports.

Potential Future Expansion: While these tariffs currently apply to Canada, Mexico, and China, there is growing concern that additional trade measures could be introduced, affecting more countries in the future.

🔹 Effective Date

The tariffs apply to goods entered for consumption or withdrawn from warehouses on or after 12:01 a.m. ET on February 4, 2025.

🔹 No Exemptions or Drawback Available

Unlike previous trade measures, there is no outlined exemption process or duty refund (drawback) options available.

🔹 Global Trade Disruptions & Potential Retaliation

Canada, Mexico, and China have already announced countermeasures, including retaliatory tariffs on U.S. goods.
Even if members import from countries not subject to these tariffs, global supply chain disruptions and increased demand for alternative suppliers could drive up costs.
Increased shipping and logistical costs may indirectly affect all imports, regardless of origin.

The Real-World Impact on ABPA Members

🔸 Increased Costs for Parts & Repairs: While some members may source from non-affected countries, rising costs on globally traded materials and logistics could still impact pricing.

🔸 Supply Chain Inefficiencies & Delays: Higher tariffs on key suppliers may cause shifts in demand, leading to sourcing challenges and longer lead times across the industry.

🔸 Uncertain Trade Landscape: Given the broad reach of these trade policies, members should stay informed about possible future restrictions and evaluate potential supply chain adjustments as needed.

What ABPA is Doing & How You Can Help

The ABPA is actively monitoring this situation and will share new information as it becomes available. However, we need your input and action:

✅ Share Your Stories: If you’re experiencing price increases, shipping delays, or supply chain disruptions, please let us know. Real-world data will help us advocate effectively.

✅ Contact Your Representatives: We encourage all ABPA members to reach out to their Congressional representatives and push back against these broad tariffs.

✅ Stay Informed: Visit www.autobpa.com regularly for updates and trade policy developments.

📩 Questions or concerns? Contact ABPA Executive Director Edward Salamy at info@autobpa.com.

ABPA will continue fighting for a fair and open market that protects our members and the consumers who rely on affordable, high-quality replacement parts.

Sincerely,

Edward Salamy
Executive Director
Automotive Body Parts Association (ABPA)