BETHESDA, Md. – September 25, 2018 – In a
letter to the Office of the U.S. Trade Representative (USTR) yesterday, the
Auto Care Association urged USTR to adopt a process for our members and
stakeholders to request products to be excluded from the latest round of
Section 301 tariffs.
Last week, USTR finalized the third Section 301 list of $200
billion Chinese imports that would be subject to additional tariffs effective
yesterday, Sept. 24, 2018 of 10 percent. Starting Jan. 1, 2019, the tariff rate
will increase to 25 percent. The Auto Care Association is concerned that the USTR’s
did not mention a product exclusion process, as it did with the first two
According to the
letter, “the administration’s exclusion process set up for products covered
in the previous two Section 301 tariff lists provides an important opportunity
for stakeholders to mitigate the negative impact these additional tariffs may
have on the U.S. automotive industry and U.S. consumers.”
The letter went on to explain that our “supply chains are global and
complex. It is not possible to easily or quickly modify supply chains without
experiencing a ripple effect. In many cases, companies have no choice
manufacturing in China as there are no alternative options due to capacity
issues, quality control or customization.
Additionally, imposing additional tariffs would increase the price
substantially, delaying safety-critical repairs and making it difficult for
U.S. consumers to afford cost-effective options when repairing their vehicles.
At the same time, we believe a trade war and tariffs will cause severe
economic harm to U.S. interests and urge the administration to continue pursuing
a bilateral, enforceable, rules-based trade agreement with China.”
For more information
about the Auto Care Association’s trade initiatives, please visit autocare.org/trade or contact Angela Chiang at email@example.com.