Auto Care Association President Bill Hanvey Testifies on Latest Section 301 China Tariffs
By Camille Sheehan
Md. – Aug. 23, 2018
– 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 tariff list on imports from China. Hanvey warned the
administration that the cost of an additional tariff would cause severe
economic harm to the U.S. automotive industry and U.S. consumers.
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. Two tariff lists on imports
from China have already been finalized and duties have gone into effect.
“The greatest impact
from this action will be on U.S. consumers who will experience higher repair
costs, likely leading to the delay of critical vehicle maintenance procedures
that may result in serious highway safety concerns,” Hanvey said in his
testimony. Hanvey shared the example of brake rotors, which are no longer
manufactured in the U.S. despite increased demand due to the number of vehicles
on the road.
“Considering that there
are over 2,600 different part numbers in the brake rotor sector, there is no
viable option to meet the demand, nor any source of the parts in the U.S.
market for every year, make and model vehicle on the road,” Hanvey said. “Therefore,
regardless of any tariff imposed, brake rotors will continue to be imported,
the vast majority from China.”
Hanvey explained that
imposing tariffs would raise prices for consumers and delay repair of critical vehicle
wear items that need to be replaced to ensure passenger and pedestrian safety.
The Auto Care Association urges the Trump administration to continue
engaging in dialogue with China to protect U.S. investments and promote free,
fair and reciprocal trade. The association does not believe the imposition of
tariffs would eliminate China’s unfair trade practices, but would raise prices
for U.S. consumers, and cause U.S. companies to be less competitive in the U.S.
and in global markets.
For more information, visit the association's trade resources webpage.