President Trump has announced new tariffs on imported steel and aluminum, two important raw materials used in the manufacturing of motor vehicles, parts and accessories.

The 25% tariffs impact all steel and aluminum imported into the United States and are on top of existing metals duties. PRI and SEMA continue to monitor this situation and will convey to the Trump administration and lawmakers in Congress the impact of tariffs on the automotive aftermarket industry. PRI welcomes feedback from its members on the impact of these tariffs. 

Trump also announced plans to implement reciprocal tariffs on countries that tax United States imports. China recently announced retaliatory tariffs in response to the 10% tariff the United States placed on the country's exports to the United States. China intends to implement tariffs on $14 billion worth of American exports.  

SEMA, in its recent "SEMA 2025 Future Trends Report" market research study, noted that tariffs have the potential to increase costs for OEMs, part manufacturers and consumers. The report notes that: 

• Most of the tariff exposure is likely to small- and mid-sized parts manufacturers, particularly those who rely on international supply chains for some of their components and materials.  
• Tariffs disproportionately impact businesses that pay upfront for goods and services, with small- and medium-sized companies potentially experiencing cash-flow issues, delayed payments, and reduced capacity and inventory.
• Competition to secure supplies of domestic steel, and thus lower costs, may be intense. 

It should be noted that President Trump prefers to employ tariffs as chips at the bargaining table. During Trump's first term, he imposed tariffs of 25% on steel and 10% on aluminum, only to later grant duty-free exceptions to several trading partners, including Canada and Mexico. Argentina, Australia, Brazil and South Korea were excluded from the 2018 steel and aluminum tariffs. 

For more information, contact Eric Snyder, PRI and SEMA's senior director of federal government affairs, at erics@sema.org.