Md. – March 12, 2018
– In a letter submitted to President Trump, the Auto Care Association urged the
administration to reconsider imposing tariffs on imports of steel and aluminum
due to unintended negative consequences it may have on the U.S. economy and the
auto care industry.
Last week, President Trump issued a presidential proclamation imposing
a 25 percent tariff on steel imports and a 10 percent tariff on aluminum
imports following findings in the Department of Commerce’s Section 232 National
Security Investigation of Imports of Steel and Aluminum.
“Based on the fact that there are few parts necessary for the upkeep of
a vehicle that do not contain significant amounts of steel and aluminum, this
action will have a significant negative impact throughout the supply chain,
including many small and medium and size businesses and their employees that comprise
the auto care industry,” said Bill Hanvey, president and CEO, Auto Care
“While we are grateful that our trading partners, Canada and Mexico, are
currently exempt, it is our view that that these tariffs will quickly become a
tax on the repair and maintenance of vehicles, a tax that will ultimately be
paid for in higher repair prices by the American car owner,” said Hanvey.
We applaud the administration’s efforts to rebalance trade and protect
the U.S. steel industry and workers, but we are concerned that global import
tariffs on steel and aluminum would have a devastating effect on
steel-consuming manufacturers downstream, including the auto care industry. Tariffs
artificially raise the prices of steel, causing modifications to tightly
integrated global supply chains and companies to be less competitive in global
We urge the administration to reconsider this action and continue
investigating the impact of steel and aluminum tariffs on the U.S. economy and
steel-consuming sectors downstream.
Read the Auto Care Association’s full letter submitted to the White