capital report: june 19, 2018

White House Publishes New Lists of Chinese Imports Subject to Tariffs

Last Friday, June 15, the Trump administration released a statement announcing a 25 percent tariff on $50 billion of goods from China and published two lists: a finalized list of 818 entries subject to the tariff beginning July 6, and another list of 284 additional entries for review and comment.

The decision follows a Section 301 investigation conducted by the Office of the U.S. Trade Representative (USTR) into China’s acts, policies and practices related to technology transfer, intellectual property and innovation.

The products announced have been “identified by the interagency Section 301 Committee as benefiting from Chinese industrial policies, including the ‘Made in China 2025’ industrial policy.”

USTR will provide an opportunity for the public to request exclusion of a particular product from the additional 25 percent duty. Additional details regarding the second list review process and exclusion process will be released in a subsequent Federal Register notice.

The president’s announcement also states that the administration will pursue additional tariffs if China engages in retaliatory measures, including new tariffs on U.S. goods or other trade barriers.

Additional resources:

The Auto Care Association supports the administration's efforts to protect U.S. intellectual property, but is deeply disappointed that the administration failed to evaluate the economic harm to the cost of repair and maintenance on family autos and the unintended consequences of trade restrictions on the average American family.

Please visit Auto Care’s trade resources page for updates and continue to reach out to us if your company is affected by these actions.


Comments Due Friday:Section 232 Tariffs on Auto Imports

Last month, President Trump initiated a Section 232 investigation to determine if the imports into the U.S. of automobiles, including SUVs, vans and light trucks, and automotive parts, threaten to impair national security.

The  Federal Register notice outlines a comment and hearing process for interested parties to submit/present information pertinent to the investigation.

Comments are due by this Friday, June 22.

To summarize, the administration is interested in comments and information that address the quantity and nature of auto and auto part imports, the existing and anticipated availability of resources for production and the impact of foreign competition on the economic welfare of the U.S. auto and automotive parts industry.

The Department of Commerce will recommend actions if it is determined that automobiles and/or automotive parts are being imported into the U.S. in quantities that threaten to impair national security.

The Auto Care Association is seeking input and data on how this proposed action could impact your company and your customers.

Please email us if you wish to submit information for the association’s submitted comments. You also can submit your own comments by visiting


Webinar Recording: Navigating Trump’s Trade Agenda

On Friday, June 8, the Auto Care Association's Manufacturers' Representatives Council hosted the latest edition of its teleforum series, titled, “Navigating Trump’s Trade Agenda: A Briefing on Steel and Aluminum Tariffs, Proposed China Tariffs and NAFTA Negotiations.”

Listen here.


Rhode Island Bill Restricting the Use of Non-OEM Parts Expected to Pass Legislature

Rhode Island is currently considering House Bill 8013 ( RI H8013), which would prohibit the installation of non-OEM parts without the vehicle owner providing expressed written consent; and prohibit insurance companies from requiring the use of an aftermarket part for any repair on a vehicle less than 48 months old. While the association and other groups have strongly opposed the bill, it has been scheduled for a final vote in the state General Assembly and appears likely to pass.

If the assembly passes the bill and sends it to Governor Raimondo, the governor will have 10 days to sign, veto or allow the bill to go into effect without a signature.

Members with operations in the state are encouraged to contact the governor and voice their opposition to this anti-competitive, anti-consumer legislation.

Please reach out to Tom Tucker with any questions.


Prop 65: Chemical List and Webinar Recording

Beginning Aug. 31, 2018, updated regulations for California Prop 65 will go into effect. The Office of Environmental Health Hazard Assessment (OEHHA), which administers Prop 65, has named various chemicals including ingredients or additives in a variety of household products, food, pesticides and others, as cancer-causing chemicals and that would be required to comply with the regulations. Further, the new protocols will require businesses to identify at least one listed chemical that could be encountered in their products and to include name of the product in the warning.

View the list of chemicals here.

The new requirements also mandate including a warning symbol with distinct specifications, a description of the endpoint of the exposure and a web address to the Prop 65 warnings website, plus a specification for the font size for the text on the warning label. California is requiring that these warnings be made before the item is purchased, not just prior to potential exposure.

The Auto Care Association recently hosted a webinar on Prop 65. To access the webinar and review the slide deck, use the links below:

For issues related to ACES/PIES and cataloging content, please view this best practices presentation [password: autocare65].

For questions on best practices for cataloging content, email the Auto Care Association technology team at


Get the Latest Coverage of the 2018 Elections

Thanks to support from the Auto Care Political Action Committee ( ACPAC), we are pleased to bring Capital Report readers the latest Inside Elections with Nathan Gonzalez, a bi-monthly nonpartisan analysis of U.S. elections.

Read the latest issue here.

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