United States. President Trump has recently revealed his plans to impose significant tariffs on imports from Mexico, Canada, and China starting January 20, 2025.
Through his Truth Social account, Trump announced that he would impose a 25% tariff on imports from Mexico and Canada, and an additional 10% on those from China, as part of his strategy to curb illegal immigration and drug trafficking.
However, these trade measures could have serious consequences for U.S. consumers and businesses, trade experts and auto care industry representatives have warned.
The Auto Care Association, which brings together more than 500,000 companies in the vehicle repair and maintenance sector, said the proposed tariffs could significantly increase the prices of spare parts and other related products.
"The tariffs are not paid by exporting countries, but the additional costs are passed on directly to U.S. consumers, which could lead to increases in the prices of vehicle repairs and maintenance, an even heavier burden in times of high inflation," the organization said.
Mexico and Canada are key trading partners for the U.S. automotive industry, together accounting for 58% of auto parts imports and 76% of auto parts exports in 2023. Among the products most affected by the tariffs are crucial components such as brake systems, piston engines, catalytic converters and suspension parts, the price of which could rise sharply due to the new levies.
The price of catalytic converters, for example, could see an increase of up to 25% due to the additional tariffs. With current prices ranging from several hundred to thousands of dollars, U.S. vehicle owners would face significantly higher costs to make essential repairs.
The impact would not be limited to consumers alone. Businesses, especially small and medium-sized ones, would also feel the effects. Auto Care Association warned that small businesses could face cash flow issues, payment delays and reduced inventories due to the additional costs of tariffs.
In addition, companies will need to bear the cost of tariffs upfront, which could divert financial resources that would otherwise be used for new investment and expansion.
Trade between the U.S., Mexico, and Canada is critical to the stability of the U.S. auto industry. The Agreement between the Three Countries (USMCA) has helped reduce trade barriers, facilitating a continuous flow of intermediate inputs and finished goods across borders.
Auto Care Association stressed that any measure that disrupts this supply chain could result in delays in vehicle repairs and maintenance, which would put the safety of drivers at risk.
