ACA joins call to reject tariffs on China

The Auto Care Association has joined with 44 other trade associations in a letter written to the White House urging the Trump Administration to not impose tariffs on U.S. imports from China. 

The letter’s focus is on China’s trade policies and practices that include market access barriers and state-directed investment policies, technology transfer and data localization mandates, policies and practices that prevent setting market-based terms in licensing and technology-related negotiations, and theft of trade secrets and other intellectual property. 

The groups think that these problems threaten the United States when it comes to global competitiveness, innovation, productivity, and cybersecurity. 

The companies acknowledge the administration’s efforts to address China’s discriminatory trade policies and practices, but the Auto Care Association believes the imposition of tariffs would “trigger a chain reaction of negative consequences for the U.S. economy, provoking retaliation; stifling U.S. agriculture, goods, and services exports; and raising costs for businesses and consumers,” as stated in the letter. 

Other groups such as; Consumer Technology Association (CTA), The APP Association (ACT) and U.S. Council for International Business also signed the notice. 

The letter also shows some of the possible outcomes of sweeping tariffs that include: 

• Increase in prices for U.S. consumers and businesses that would effectively levy a tax on U.S. consumers and businesses, negating gains for American workers from U.S. tax reform. 
• Harm to Chinese shippers and U.S. companies that sell component pieces of final products exported from China 
• Harm to community service providers—including American health care, education, and emergency responders 
• Damage U.S. manufacturing exports by making it more expensive to obtain key inputs and disrupting existing supply chains, which would have a negative impact on American jobs 
• Reduce consumption of products would also depress financial markets  

“We urge the Administration not to impose tariffs and to work with the business community to find an effective, but measured, solution to China’s protectionist trade policies and practices that protects American jobs and competitiveness. Consistent with Section 304 of the Trade Act of 1974, we request that the Administration allow industry experts the opportunity to comment on these issues, including the economic impact of any potential actions.” stated the groups in the letter. 

This new joint association letter follows the Auto Care Association’s initial letter sent to the White House asking the administration to reconsider the steel and aluminum tariffs. The letter can be read here.