By Edward Salamy
Executive Director, ABPA
The automotive aftermarket is once again facing a significant trade policy development that could affect supply chains, replacement part costs, and vehicle repair affordability.
On June 2, the Office of the United States Trade Representative (USTR) announced proposed actions under Section 301 of the Trade Act of 1974 following investigations into whether 60 economies adequately prohibit and enforce restrictions on the importation of goods produced with forced labor. USTR has proposed additional tariffs ranging from 10% to 12% on a broad range of imported products, with written comments due July 6, 2026, and a public hearing scheduled for July 7.
While the proposal is not directed specifically at automotive replacement parts, many ABPA members source products from countries included in the investigation. Depending on how the proposal is finalized, additional tariffs could affect replacement part pricing, sourcing decisions, inventory costs, and overall repair affordability.
Of particular interest to the automotive replacement parts industry, several major sourcing regions are included in the proposal. Economies subject to the proposed 10% tariff include Canada, Mexico, the European Union, Taiwan, Indonesia, Malaysia, and others, while many other countries would be subject to a proposed 12% tariff. ABPA members that import products from these regions should carefully review the proposal to determine whether their supply chains or product categories could be impacted.
ABPA Encourages Industry Participation
The USTR is specifically seeking public input on:
- Products that should be added to or removed from the scope of the proposed tariffs.
- Whether certain products should remain excluded.
- The appropriate tariff rate, if any.
- Whether tariffs could create supply chain disruptions or unintended economic consequences.
- Whether the proposed action would effectively address the concerns identified by USTR.
TAKE ACTION BEFORE JULY 6
The ABPA encourages manufacturers, distributors, importers, collision repair businesses, insurers, and other aftermarket stakeholders to review the proposal and submit comments directly to USTR regarding the potential impact on automotive replacement parts, supply chains, repair costs, and consumer affordability. The ABPA will be making a submission on behalf of the industry but I encourage as many members and industry stakeholders to also participate.
Submit Comments to USTR
Deadline: July 6, 2026
Direct Comment Portal:
https://comments.ustr.gov/s/submit-new-comment?docketNumber=USTR-2026-0265
Additional Resources
Section 301 Forced Labor Investigation Information:
https://ustr.gov/trade-topics/enforcement/section-301-investigations/section-301-failure-impose-and-effectively-enforce-prohibition-importation-goods-produced-forced
The ABPA will continue monitoring this latest trade development and will provide updates as additional information becomes available.
