The specialty automotive aftermarket industry is comprised of thousands of small businesses that manufacture, sell, distribute, and install parts and components for the customization and modification of all types of motor vehicles. Our industry relies on a global supply chain to source materials and components that these U.S. small businesses use for the domestic manufacturing of their products. SEMA and PRI members supply parts for millions of automotive enthusiasts in the U.S., and the overall quality and innovation found in their products are desired by gearheads around the globe via export.

SEMA and PRI believe that a strong system of international trade, allowing for fair importation and exportation of goods, is critical to the growth and sustainability of the specialty automotive aftermarket, which annually contributes $337 billion to the nation’s economy and supports over 1.3 million American jobs.

In our industry, tariffs impact everything from steel and aluminum to auto parts; country-specific tariffs are equally impactful to the specialty automotive aftermarket as they are to nearly every other industry.

SEMA and PRI work with our member companies to understand the impact that the various tariffs are having on our industry. We are committed to educating U.S. policymakers on the impact of trade and tariff policies to ensure the federal government supports domestic manufacturing, the protection of intellectual property, and trade that is both free and fair.

Our actions and advocacy will always be guided by the following principles:

• Rapid changes cause paralysis and stagnation. Uncertainty is detrimental to the operations of small businesses, regardless of industry. SEMA and PRI members seek transparency and open dialogue from the federal government. You’re likely to hear them say, “Just tell it like it is,” because that’s what their employees and customers expect from them. Companies of all sizes require certainty to aid their long-term planning, enable strategic investment, and alleviate fears of retroactive enforcement. They seek clarity on affected goods to allow for such strategic and financial forecasting.
   
• If tariffs are intended to encourage domestic production and level the playing field, we need to ensure that domestic suppliers of steel and aluminum aren't taking advantage of the situation. As all types of U.S. businesses start to find ways to reshore their manufacturing, it's important to acknowledge the impact to domestic raw material suppliers on entire industries. Many aftermarket companies already source materials domestically but, since 2018, have faced ongoing price increases from domestic suppliers – due in some part to pressures from increased demand in the domestic market. It is critical that the federal government takes steps to ensure that domestic suppliers do not become opportunistic in their pricing for American manufacturers, including the establishment of oversight and guardrails.
   
• Orderly transitions benefit everyone. The U.S. government needs a long-term plan to expand American manufacturing and support companies’ efforts to reshore their operations. This includes tax incentives and policies that provide the “carrot,” rather than just a “stick.” Where domestic alternative components do not exist, flexibility is limited and vulnerabilities are heightened. Where this exists, tariffs become punitive and companies require protective benefits.
   
• Ours is an unwavering belief in American manufacturing and ingenuity. Regardless of the initial pains wrought by tariffs, our members and industry continue to champion domestic manufacturing as a strategic imperative and an example of American exceptionalism. The aftermarket wants a better future where “American-made” is the norm. As such, reshoring efforts must be bolstered with targeted government incentives via grants, tax relief, and infrastructure investment.

RESOURCES

• EXECUTIVE ORDER: President Trump's Proclamation on Adjusting Imports of Automobiles and Automobile Parts in the United States
• FACT SHEET: President Donald J. Trump Adjusts Imports of Automobiles and Automobile Parts into the United States
• EXECUTIVE ORDER: Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits
• FACT SHEET: President Donald J. Trump Declares National Emergency to Increase our Competitive Edge, Protect our Sovereignty, and Strengthen our National and Economic Security
• LETTER: SEMA Outlines Tariffs Impact for President Trump