ABA and UMA Advocate for Tariff Relief on Motorcoach Imports
The American Bus Association (ABA) and the United Motorcoach Association (UMA) have taken decisive action to protect the motorcoach industry from the impact of new tariffs. In a joint letter to U.S. Trade Representative Jamieson Greer and Secretary of Commerce Howard Lutnick, ABA President & CEO Fred Ferguson and UMA President & CEO Scott Michael urged the administration to include motorcoaches in a one-month delay of tariffs on automobile imports from Canada and Mexico.
Motorcoaches, a critical component of the nation’s transportation infrastructure, face the same supply chain challenges as the passenger vehicle industry. With no U.S. manufacturing for decades, most motorcoaches are imported from Canada and Europe, while key components such as engines and transmissions are produced domestically. The proposed tariff delay would help ensure continued availability of these essential vehicles for group travel, tourism, and long-distance transportation.
By advocating for this exemption, ABA and UMA are working to safeguard small businesses, mitigate industry disruptions, and support the broader travel and tourism sector.
Dear Ambassador Greer and Secretary Lutnick:
On behalf of the U.S. motorcoach industry which includes original equipment manufacturers, we are writing to respectfully request that motorcoaches be included in the one-month delay of tariffs on automobile imports from Canada and Mexico.
Motorcoaches are large passenger vehicles used for group travel, tourism, and long-distance transportation, and they are subject to the same USMCA (United States-Mexico-Canada Agreement) Rule of Origin criteria as passenger cars. Under this agreement, motorcoaches that meet these criteria receive duty-free treatment when imported from Canada. However, the same supply chain disruptions that have delayed vehicle production, caused parts shortages, and hindered manufacturing for the passenger car industry are also significantly affecting the motorcoach industry.
Motorcoaches are an essential part of the nation’s transportation infrastructure, supporting over 400 million passenger trips per year across a variety of sectors including fixed route scheduled services, commuter services, private charter bus services, and travel and tourism. The motorcoach industry is largely composed of small businesses, more than 80% of which operate fewer than 25 motorcoaches.
While motorcoaches are currently imported from Canada and Europe – with no U.S. manufacturing for many decades – key components—such as engines, transmissions, and electrical systems—are manufactured domestically. In addition, motorcoach manufacturers have large networks of dealers, parts and maintenance facilities in the U.S.
Given the shared challenges between the motorcoach industry and passenger vehicle production, we strongly urge that motorcoaches be included in the same one-month tariff delay to alleviate the negative impact on our sector. Extending this delay would support the timely availability of motorcoaches and help mitigate the challenges facing group travel, tourism, and long-distance transportation.
Lastly, we want to express our support for the Administration’s efforts to address the ongoing supply chain disruptions and fentanyl crisis. We recognize and appreciate your leadership in working to resolve these pressing issues facing our country.
Thank you for your consideration. We look forward to your response and appreciate your support in advancing policies that benefit the U.S. motorcoach and group travel industry.
Sincerely,
Fred Ferguson
President & CEO
American Bus Association
Scott Michael
President & CEO
United Motorcoach Association
