While there may still be some consequences for outright racism and homophobia, more nebulous attacks on “Diversity, Equity, and Inclusion,” or DEI, continue to proliferate after being branded “woke” by President Trump and his high-profile advisors. Apparently, trying to make sure jobs don’t all go to the hiring manager’s unqualified buddies is bad, somehow, but one unexpected casualty — beyond Target’s stock price — is automotive parts supplier Design Engineering, Inc. That DEI just wants to make car stuff, but is now dealing with unwanted fallout from an unwanted political association, the Wall Street Journal reports.
The Ohio-based Design Engineering, Inc. mainly focuses on heat and sound insulation, selling a wide variety of automotive products, as well as side-by-sides, recreational vehicles, and boats. As DEI President Dave Markley told the WSJ, the name has become an issue lately. “You’re reading these headlines: ‘DEI is wrong,’ ‘Terrified of the aftermath of DEI,'” Markley told the newspaper. “It’s disheartening when somebody’s, like, bashing your baby.”
Markley says this isn’t the first time the name has caused issues. Until recently, DEI also regularly received calls from people looking for Dale Earnhardt Inc. “We finally got over that hump,” Markley told the WSJ. “Then the new DEI came. It’s just like, oh, God, not again.”
Not the only DEI
Of course, folks in the auto parts game have a lot more to worry about than the latest dog whistle of the week, as steep tariffs on foreign-made car parts went into effect earlier this month. While some auto parts slipped through the tariff net, many now have a 25% tariff slapped on them.
Parts made in Mexico or Canada generally come away unscathed so long as they are compliant with the United States-Mexico-Canada Agreement. Also, as long as a car is assembled in the U.S., automakers can get a refund on certain overseas parts, at least for a limited time. Is that process clear cut? Hell no! From Yahoo! Finance:
Per the new rules, automakers will be reimbursed for tariffs on foreign-made auto parts up to an amount equal to 3.75% of the value of a US-made car for one year, then 2.5% the year after, before phasing out.
The 3.75% calculation comes from multiplying 15% — the percentage of foreign-made parts automakers said they would need time to replace — by the 25% tariff on foreign auto parts. This would be an “offset” per the Commerce Department against the automaker’s tariff bill for importing those parts.
In the plan’s second year, the 2.5% reimbursement comes from multiplying 10%, which the administration hopes will be the percentage of foreign parts that can’t be sourced yet in the US, by the 25% parts tariff.
You might have noticed all these rebates apply to automakers that finished their cars in the U.S. and not small business owners selling aftermarket parts like DEI does. While DEI does proudly sell a ton of American-made products and mark them as “made in America,” they aren’t all produced in the land of the red, white and blue and there’s no graduated relief structure for such retailers.