If you run a small or medium-sized automotive parts business in North America, you’re already feeling the pinch. Recent tariff changes initiated by the Trump administration have upended established supply chains, pushing costs higher, disrupting inventories, and reshaping the competitive landscape. At Data Here-to-There (DH2T), we’re closely tracking these developments to help you understand what’s happening, why it matters, and how you can navigate these uncertain waters.
Earlier this year, the U.S. government slapped a hefty 25% tariff on imported vehicles and automotive parts. The aim? To boost domestic manufacturing and reduce trade deficits. But the unintended consequences have been profound—especially for businesses like yours, which rely on a stable, predictable supply chain.
According to recent analyses, these tariffs have added roughly $4,700 to the average cost of a new vehicle. For auto parts suppliers and retailers, this has translated into higher costs, squeezed margins, and difficult conversations with customers about rising prices.
The auto industry voiced concerns that the tariffs would lead to higher prices for consumers, reduced sales, and disrupt the global supply chain.
The Specialty Equipment Market Association (SEMA) has been particularly vocal about the risks these tariffs pose. In an open letter to President Trump, SEMA outlined how the $337 billion U.S. automotive aftermarket industry—powered largely by small and medium-sized businesses—faces immense pressure due to increased production costs and supply chain disruptions. SEMA is pushing for crucial relief measures, including tariff exemptions for essential equipment and meaningful tax incentives to ease the burden of reshoring production.
As business owners, it’s essential to stay informed. You can read SEMA’s full letter here.
Following strong advocacy from industry groups, the Trump administration implemented a temporary easing of certain tariffs, offering modest but meaningful relief to some manufacturers. Still, many businesses—especially those in Canada—continue to feel the economic strain.
Canada’s automotive sector is deeply integrated with the U.S. market through the USMCA trade agreement, making Canadian businesses particularly vulnerable. Higher tariffs mean Canadian suppliers face increased export costs and potential job losses. Industry analysts warn that thousands of jobs could vanish if these conditions persist, with many smaller operations at risk of closure.
Fortunately, the industry is responding with resources to help you manage and mitigate these impacts. One such tool is the newly launched Auto Parts Tariff Calculator, available for Auto Care Association members. This invaluable resource allows users to quickly assess how specific tariffs affect their bottom line. By understanding these numbers clearly, you can make better-informed decisions about pricing, sourcing, and inventory management.
While the current tariff landscape may seem daunting, there are actionable steps you can take to protect—and even strengthen—your auto parts business:
At DH2T, our mission is clear: support small and medium-sized automotive businesses with cutting-edge e-commerce solutions that keep you competitive, efficient, and profitable—even in challenging times. Our apps and integrations are specifically designed to simplify complex tasks like managing distributors, updating product listings, and optimizing pricing in real time.
We’re committed to helping your business adapt, innovate, and grow, no matter how the economic landscape changes.
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