How tariffs will impact automotive seat suppliers in US

Tier 1 seat suppliers are taking steps to address the impact of tariffs while seeking to fully recover any unmitigated incremental tariffs from their OEM customers.

For more than 30 years, automakers and suppliers—including manufacturers of complete seats and seat components—in North America benefited from nearly hassle-free movements of vehicles and auto parts between the US, Canada, and Mexico; first as part of the North American Free Trade Agreement (NAFTA) and later under the US-Mexico-Canada Agreement (USMCA). However, the trade dynamics have changed rapidly this year after the US government announced several tariffs on imports of goods into the US, even from Canada and Mexico.