AAAA presses Canberra on US tariff threat to automotive component exports

The Australian Automotive Aftermarket Association (AAAA) is calling on the Federal Government to urgently reopen trade discussions with the United States, warning that a 25% tariff is jeopardising the future of Australia’s automotive component manufacturers.

The tariff, imposed under Section 232 provisions, was first introduced in 2018 and reinstated in May 2025. Originally designed to protect the US car manufacturing industry, the measure also captures aftermarket components exported from Australia, even though they are not supplied to American vehicle makers. For local businesses competing in their most important overseas market, the AAAA says the barrier is a major blow to competitiveness.

AAAA Chief Executive Officer Stuart Charity described the impost as a “critical issue” for the survival of what remains of Australia’s automotive component sector.

“Our industry has worked hard to remain globally competitive despite the end of local vehicle manufacturing,” he said. “We now produce world-class, niche components that are in demand overseas, but a 25% cost impost in our largest export market is a heavy burden to overcome.”

Charity emphasised that the tariff has nothing to do with the quality or safety of Australian-made products, which are widely recognised as meeting or exceeding international standards. Instead, he argued, it is purely a matter of ensuring that exporters can compete fairly. “The US market is vital to the future of our industry, and removing this tariff would be a game changer for jobs, innovation, and investment in Australia,” he said.

The AAAA has urged Canberra to push for an exemption or reduction under the Section 232 provisions and to make the case in Washington for the strategic value of Australian-made components. Charity said this issue should be treated as a key test of the government’s commitment to advanced manufacturing and export growth.

“The Government has talked about not just protecting, but growing domestic manufacturing. Here is a clear, immediate test of that commitment,” he said.

While critical of the impact of the tariff, Charity stressed the AAAA’s intention to work constructively with US counterparts. “This is not about pointing fingers,” he said. “It’s about working with our friends to find a solution that supports both countries’ automotive industries. For some of our exporters, this issue could make or break their ability to maintain an Australian manufacturing base.”