While headlines focus on Detroit giants, 12,000 small U.S. auto suppliers could be wiped out by Trump’s proposed tariffs, according to a Motor & Equipment Manufacturers Association (MEMA) crisis report. These family-owned businesses—which make everything from spark plugs to seat cushions—face:
Double Whammy
- 25% higher costs on imported raw materials
- Detroit automakers demanding 15% price cuts to offset their own tariff pain
Case Study: Michigan-based Precision Gasket Co. (3 generations, 47 employees) would need to:
✔ Raise prices 22% (losing Ford contract)
OR
✔ Operate at a loss until bankruptcy (~8 months projected)
“These tariffs are an existential threat to America’s automotive middle class,” said MEMA’s Julie Fream. The potential 340,000 job losses would devastate:
- Ohio’s beltway suppliers
- Indiana’s transmission part makers
- Alabama’s engine component shops
