The Specialty Equipment Market Association (SEMA) is hoping to wield its weight as a lobbying organization and representative of the automotive aftermarket with a plea to the White House concerning the impact of tariffs on the the nation’s automotive aftermarket industry–which according to SEMA, has a “nearly $337 billion in economic impact to the U.S. economy. With a letter to President Trump, cc’ing U.S. Treasury Secretary Scott Bessent, U.S. Commerce Secretary Howard Lutnick, U.S. Trade Representative Jamieson Greer, and White House Trade Advisor Peter Navarro, SEMA President and CEO Mike Spagnola praises the administration’s efforts to return manufacturing to America, reduce regulatory restrictions on internal combustion engines and related products, and more but hopes to elucidate points that the administration may not be aware of concerning the industry.
“While you have rightfully used tariffs to incentivize companies around the world to manufacture their products in America, they are resulting in unintended consequences for U.S. manufacturers in our industry. In fact, many domestic businesses that manufacture their products in the U.S. are being directly and indirectly impacted by the tariffs, which make it a challenge for these companies to remain profitable.”
However, SEMA recognizes the challenges that the tariffs will represent for small and medium sized manufacturers, many of whom source molds and materials overseas and particularly from China. For some, they literally cannot get the components in the United States because they need them in smaller quantities than many domestic manufacturers offer.
“For many specialty automotive businesses that manufacture their products in America, they are forced to source components used in their products from international suppliers, because there are no domestic manufacturers or none that will produce components in smaller volumes that meet their needs. For businesses in this position, they have no choice but to source components from abroad. We are hopeful that your efforts to expand American manufacturing will help to address this challenge, but our members are concerned about the tariffs they will face during the transition period, which many expect to take at least 18 months.”
“Our primary request is that American automotive parts manufacturers, including our members, be provided a transition period to re-shore their manufacturing, as well as some form of economic relief to assist in that transition,” writes Spagnola. “That relief could include tariff exemptions for things like molds, tooling, and machinery brought back to the U.S., as well as tax incentives to offset the associated costs.”
Whether the missive will make any impact on the Trump administration’s actions remains to be seen. To read the full letter, go here: Letter to President Trump
Put your big boy pants on SEMA . While this is going to hurt everyone a little. You and ALOT of your members are more responsible than the typical average working class, in wrongs that need to be righted in this effort.
How dare you, in these early stages (18 months, you can’t be that stupid) suggest a handout.
This is a disgusting letter, I am not impressed or sympathetic. I sincerely believe that your upper management is in dire need of reevaluation.