BETHESDA, Md. –
May 15, 2018 – Today, the Auto Care
Association’s Senior Vice President, Government and Regulatory Affairs, Aaron Lowe, testified before the Office of the
United States Trade Representative (USTR) on the anticipated negative
effects of the Trump administration's Section 301 tariffs on automotive parts
and components imported from China. The tariffs are part of a proposed action
by the administration to address unfair acts, policies and practices by China that
are related to technology transfer, intellectual property and innovation.
The Auto Care Association supports the administration's
efforts to address China's unfair trade policies but cautions the
administration to evaluate the potential economic harm and unintended
consequences as the imposition of additional tariffs could raise prices for
U.S. consumers and cause U.S. companies to be less competitive in the U.S. and
in global markets.
"Our members report that a
number of products included on the tariff list cannot be sourced in the U.S. as
there are no U.S.‐based factories producing some of these products," said Lowe. “At
the same time, minimal alternative sources exist, as China is the primary
supplier to the world. Therefore, we do not see any benefits to the U.S.
economy or U.S.‐based manufacturers when imposing tariffs on these products, as
sourcing would just shift to low‐cost countries and would not alleviate the
overall U.S. trade imbalance."
Earlier this week, the Auto Care Association submitted comments
to USTR regarding the impact of the proposed Section 301 actions on the
automotive aftermarket industry. As outlined in the comments and a recent multi-industry
letter, of which the association was a signatory, the association and its
members believe that the imposition of tariffs will disrupt complex global
supply chains “that cannot be shifted to different countries or facilities
without compromising contracts, compliance, quality and value for the
The Auto Care Association urges the Trump administration to
continue engaging in dialogue with China to construct a fair and enforceable
bilateral trading system that will level the playing field and protect U.S.
companies doing business in China.
For more information about the Auto Care Association’s
government affairs efforts and initiatives on trade policy in the auto care
industry, please visit www.autocare.org/trade
or contact Aaron Lowe at email@example.com.