The strategies used by US company Strattec Security Corporation to combat tariffs on auto parts have enabled it to mitigate the impact on its operations in Mexico and the United States.
Strattec, based in Milwaukee, is a global leader in vehicle locks and access systems. It provides mechanical and electromechanical solutions to original equipment manufacturers (OEMs) such as General Motors and Ford.
Combat tariffs on auto parts
The company produces electronic keys, passive start systems, latches, and user controls. It is also part of the global VAST Automotive Group consortium. This alliance allows it to expand its international reach and consolidate its position in the automotive industry with innovation and joint strategies.
In its 2025 fiscal year, which ended on June 29, Strattec recorded net sales of $565.1 million. The figure represented annual growth of 5%, confirming the strength of its business model.
The company also highlighted that it managed to mitigate much of the impact of the tariff increase in the United States. It achieved this through the following actions:
- Changes in its global supply chain.
- Transfer of costs to customers.
- Changes in its logistics processes.
Business impacts
Strattec continues to seek commercial cost recovery. Its goal is to fully offset the increase in expenses resulting from tariffs.
In the second half of fiscal year 2025, Washington announced broader tariffs on goods imported from various countries. Although it included certain exemptions, the measure had a major impact on the supply chain.
Currently, U.S. customs applies a 35% tariff to Canada and 25% to Mexico on products that do not comply with the USMCA. The decision is justified under accusations of lack of cooperation on fentanyl and migration issues.
Added to this is a 25% tax on light vehicles imported from both countries, provided they do not include U.S. content. A 50% tariff was also set on steel, aluminum, and copper from Canada and Mexico.
The reaction was immediate. Several countries responded with reciprocal tariffs and countermeasures. Since then, the situation has evolved, and uncertainty continues to shape the course of international trade.
Strattec faces these tensions like other suppliers in the sector. Its supply chain is global and depends on imported raw materials and components. Final assembly, however, is concentrated in its operations in Mexico.
About 65% of its sales end up in customer plants in the United States. Most comply with the USMCA, while the rest go to other international markets.