BETHESDA, Md. – June 18, 2019 – Auto Care Association
President and CEO Bill Hanvey testified
earlier today before the U.S. Trade Representative (USTR) in Washington, D.C.
on the latest proposed fourth Section 301 tariff list on imports from China.
Hanvey voiced our support for the Trump administration’s efforts to address
China’s unfair trade policies but warned the administration of the negative
impact tariffs are having on our industry’s supply chain.
Hanvey testified that our members are experiencing many challenges as a
result of the Section 301 tariffs, including heavy financial strain from
absorbing tariff-related costs, decrease in demand for products, margin
pressure and negative cash flow. “As prices increase, not only are American
jobs lost, but safety-critical maintenance is deferred, thus making American
roads less safe,” Hanvey said in his testimony.
Hanvey went on to explain that the impact of tariffs extends far beyond
just the cost of the tariff. “One unintended consequence that every member is
facing is the burden tariffs are having on company resources,” Hanvey said in
his testimony. “According to a member, ‘understanding the impact has consumed
resources in purchasing, product management, sales and customer service
functions that otherwise would be devoted to growing the business.’”
Earlier this week, the Auto Care Association submitted comments to
USTR regarding the impact of the proposed Section 301 tariffs on our industry
to remain competitive. The Auto Care Association also joined 660 other trade
associations and companies in a multi-industry nationwide campaign letter
urging the administration to avoid additional tariffs and reach a resolution
The tariffs are part of USTR’s Section 301 investigation to address
unfair acts, policies and practices by China that are related to technology
transfer, intellectual property and innovation. Three tariff lists on imports
from China have already been finalized and duties have gone into effect.
For more information about the Auto Care
Association’s trade initiatives, contact Angela Chiang, director, international
affairs, at email@example.com
or visit autocare.org/trade