AKRON
In January President-elect Donald Trump will re-assume the presidency with a Republican majority in Congress that may back many of his initiatives.
Trump has said he wants to reduce the number of government regulations. He also plans to levy tariffs on imports from China, Mexico and Canada after he takes office — as much as 25% tariff rate on all imports from Mexico and Canada and an additional 10% tariff rate on all imports from China.
What that means for the tire and automotive service industry remains to be seen, but the Tire Industry Association (TIA), the Auto Care Association (ACA) and the U.S. Tire Manufacturers Association (USTMA) told Tire Business they plan to work with the new administration and Congress to address various concerns and issues.
How will Trump's proposed policies, especially increased tariffs, impact the tire industry?
"TIA recognizes both the potential benefits and challenges of the proposed tariffs. They could serve as a powerful negotiating tool to address unfair trade practices, but independent tire dealers may face short-term difficulties, including increased costs for imported products and potential supply chain disruptions," TIA said.
"While these challenges are concerning, TIA remains hopeful that the administration's broader trade policies will ultimately create a more equitable market. We are committed to working with policymakers to ensure the interests of independent tire dealers are protected throughout this process," TIA said.
The ACA said it advocates for free trade.
"The United States automotive aftermarket, a nearly $500 billion industry, relies on a robust, global supply chain, and the Auto Care Association is dedicated to working with the new administration to ensure that it prioritizes free trade policies and tariff regulations that will foster economic growth, create jobs and keep prices competitive," the ACA said, warning of the significant impact tariffs would have on U.S. consumers and the auto care industry.
"Tariffs of this magnitude on America's largest trading partners could dramatically raise prices for U.S. consumers and U.S. businesses," the ACA said in a statement.
"Tariffs are not paid for by our trading partners; instead, they are passed down the supply chain and are a financial burden on families trying access affordable parts to repair and maintain their vehicles. Delays in vehicle repairs and maintenance pose a safety risk for drivers, passengers and pedestrians.
"Additionally, tariffs are a significant financial strain on businesses that must pay the tariff costs upfront, tying up resources and capital that would otherwise be used for other investments and growing the business. For small and medium-sized businesses, this could result in cash flow challenges, delayed payments, reduced capacity and inventory, causing businesses to scale back the operations."
The ACA said Mexico and Canada are the American auto care industry's "largest and most critical trading partners, accounting for 58% of auto parts imports and 76% auto parts exports in 2023."
The ACA said that an increasing number of vehicle owners have delayed vehicle maintenance, from 21.6% in 2021 to 25.1% in 2023, primarily due to costs.
"A potential 25% to 100% cost increase for replacement automotive parts is likely to drive the price of vehicle maintenance and repair up for consumers even further. This would result in even more vehicles in operation on American roadways that are past due for service and in need of repair. With the sting of inflation still being felt by many Americans, the Auto Care Association supports the incoming Trump administration's goal of achieving fair trade and we strongly encourage the incoming Trump administration to pursue trade measures that will help to lower everyday costs for Americans," the association said.
Meanwhile, the USTMA said it expects to see a shift in regulatory priorities, including a potential regulatory pause, while the new administration reviews and assesses existing policies.
"This change offers the tire industry an avenue to engage with fresh faces and perspectives within the administration, advancing a dialogue about the tire industry's key issues and challenges including sustainability, innovation, and economic growth," the association said.
"Building on its proactive efforts, USTMA will continue to advocate for updates to National Highway Traffic Safety Administration (NHTSA) standards, trade policies that support domestic manufacturing, and initiatives to enhance industry competitiveness in global markets. Additionally, we plan to work with state governments and other stakeholders to address policy gaps and ensure alignment with industry goals and priorities.
"While we cannot speculate on specific tariff proposals at this time, trade policies, including tariffs, have a direct impact on the U.S. tire industry, particularly regarding the costs of raw materials, equipment and other products," the USTMA said.
"USTMA remains focused on advocating for fair trade practices that support domestic tire manufacturing and jobs. USTMA will continue working closely with federal and state policymakers to ensure trade policies align with the industry's broader goals of sustainability, innovation and economic growth."
What are the chances of Right to Repair legislation passing under the Republican-controlled Congress?
"TIA is optimistic about the chances of passing Right to Repair legislation under a Republican-controlled Congress. This issue has garnered strong bipartisan support, and many Republican lawmakers recognize the importance of protecting small businesses and promoting competition," TIA said.
"TIA is particularly encouraged by the presence of Republican champions for this cause and is committed to working closely with Congress to push this legislation forward. Passing Right to Repair legislation in the 119th Congress will be a top priority for TIA. If successful, Right to Repair will empower independent tire dealers and service providers by ensuring fair access to critical repair and diagnostic information," TIA said
The ACA has also been actively promoting Right to Repair legislation for years.
"The Auto Care Association stands firm in its commitment to ensuring that vehicle owners and independent repair shops have the right to access critical repair information needed to maintain and repair vehicles. As modern vehicles become more complex, the availability of repair data is essential to preserving consumer choice and promoting fair competition," the ACA said.
"With widespread support among American voters across the country, the association looks forward to engaging with the new administration to support bipartisan legislative and regulatory initiatives that protect the right to repair and maintain a competitive, transparent marketplace."
What concerns do you have, or want to address, under the new administration?
TIA said it is focused on several key priorities to support its members and the broader tire industry:
1. Tax Reform: "We are looking forward to addressing tax reform by extending many of the 2017 tax cuts, maintaining estate tax exemption levels, extending provisions like the Work Opportunity Tax Credit (WOTC) and Section 199A, and advocating for comprehensive changes that support small businesses," TIA said.
2. Regulatory Relief: "TIA welcomes the administration's commitment to rolling back burdensome regulations. Excessive fines and pressure from agencies like OSHA have placed unnecessary strain on our members. We will advocate for a more balanced approach that promotes safety while reducing compliance costs."
3. Infrastructure Funding: "We are optimistic about the possibility of a new transportation funding bill passing in the next two years. This legislation is critical for maintaining and improving the nation's roads, which directly impacts the tire industry."
4. EV Mandates: "Rolling back aggressive EV mandates will benefit the majority of our members, who primarily serve traditional internal combustion engine (ICE) vehicles. This approach will give independent dealers more time to adapt to evolving market demands," TIA said.
5. Workforce Development: "Addressing technician and driver shortages is another priority. TIA supports policies that invest in workforce development, providing new opportunities for workers while meeting the labor needs of our industry," the association said.
"By working with a business-friendly administration and Congress, TIA is confident that we can make significant progress on these issues to benefit our members and the broader tire industry," TIA said.
The ACA wants to promote trade schools and address the shortage of vehicle service technicians.
"The shortage of skilled vehicle technicians remains one of the most pressing challenges facing the auto care industry. The Auto Care Association is committed to supporting initiatives that will increase the number of trained and qualified technicians, including the promotion of vocational and trade school programs," the association said.
"With the automotive repair sector poised to grow in the coming years, a steady pipeline of talent is essential to meeting demand. The association looks forward to working with the administration to promote trade education and ensure that young people have the skills they need to succeed in the modern automotive workforce."
The USTMA said its priorities include advancing innovation, economic growth and sustainability in tire manufacturing while also addressing emerging policy and regulatory changes.
"Our focus will be on maintaining leadership in sustainability and fostering innovation, to ensure that the U.S. tire industry remains competitive, resilient and poised for a thriving future.
"Building on this focus, key priorities include expanding end-of-life tire recycling markets, fostering the retreading industry to support job creation, and collaborating with stakeholders across the value chain to modernize regulations," the USTMA said.
"USTMA sees an opportunity to collaborate with policymakers to finalize critical regulations that enhance environmental stewardship and support industry growth. By advocating for updates to NHTSA performance standards, supporting trade policies that protect domestic jobs, and investing in circular markets and sustainable materials, USTMA aims to drive balanced progress."
