Here’s what you need to know:
- MEMA is advocating for the formal renewal of the USMCA agreement to provide stability and growth potential for North American manufacturers.
- Tariff volatility is another 2026 MEMA priority, as shifting sourcing and production for component production is a costly, time-consuming affair.
- MEMA also is seeking more information from the Trump administration regarding the offset program that exists within its medium- and heavy-duty truck tariffs.
Preserving and strengthening the United States-Mexico-Canada (USMCA) trade agreement and continuing to convey the importance of automotive and commercial vehicle sectors within American manufacturing and the economy among the top priorities for the Motor & Equipment Manufacturers Association (MEMA) in Washington in 2026, says Bill Frymoyer, MEMA’s vice president of public policy.
As the voice of the vehicle supplier industry, Frymoyer says MEMA believes the USMCA agreement is the foundation of modern vehicle manufacturing. Since its implementation in 2020, he says USMCA has enhanced U.S. job creation and the overall economic footprint of the motor vehicle supplier sector. He adds U.S. government statistics indicate that, since 2019, U.S. parts production increased by $37.2 billion while imports from outside North America declined.
The USMCA was negotiated during President Donald J. Trump’s first term, but since returning to office in 2025 the president has at various points expressed concerns about the agreement. The U.S., Mexico and Canada are required to review the agreement on its six-year anniversary in July to determine whether it will be renewed for six years, extended with changes, exited early or enter into serial annual reviews.
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MEMA supports renewal of the USMCA to enable the supplier community to continue the onshoring efforts its members have undergone since 2020.
“Strong rules of origin (75% North American content for select categories) are driving reshoring and reinvestment across the supplier base,” says Frymoyer.
He adds MEMA is active in the USMCA working group in Washington, trying to convey its message to the administration. Tactics include using data-driven arguments around jobs, investment and sourcing, hosting elected officials at member manufacturing sites and participating in meetings with senior officials to reinforce that USMCA “strengthens U.S. competitiveness and supply-chain resilience, particularly versus China,” Frymoyer says.
“The 2026 review is an inflection point; weakening the agreement now would disrupt active investments and threaten manufacturing jobs,” he adds.
But MEMA’s trade focus isn’t limited to USMCA.
It also is pushing for a reduction of tariff volatility and stacking, which Frymoyer says “undermines sourcing decisions and risks disrupting critical inputs that the industry needs to manufacture in the U.S.”
There’s also the matter of securing funds for members required by tariff law. If the Supreme Court chooses to strike down President Trump’s IEEPA tariffs as unconstitutional, MEMA members would be entitled to the previous duties they paid under those tariffs.
Additionally, a proclamation issued by the White House in October allows for the creation of a tariff offset program for medium- and heavy-duty parts as part of the Section 232 truck tariffs. Frymoyer says the proclamation (10984) indicates an offset equal to 3.75% of the aggregate value of trucks assembled in the U.S. from 2025–2030 will be made available, and only offset Section 232 truck-part tariff liability.
He says the supplier industry is awaiting formal guidance and information on the program from the U.S. Department of Commerce with implementation still pending.
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“The current understanding is that commercial vehicle OEMs will apply to Commerce to access the offset program, designate their suppliers as importers of record and allocate offsets, which are subsequently applied by CBP at entry,” Frymoyer says.
In the meantime, he says MEMA is holding regular briefings with members regarding the parameters of the offset program while MEMA member companies have been in direct contact with their OEM partners concerning their designations of suppliers as importers of record.
