Auto Service World
News   March 20, 2019   by Adam Malik

MEMA backs call to delay tariffs

The U.S. association for auto manufacturers is applauding a bipartisan effort to study the automotive industry and its role in the American economy before tariffs can be imposed.

The Automotive Jobs Act was introduced recently by Representatives Terri Sewell (D-Ala.) and Fred Upton (R-Mich.). it would delay on any tariffs on automobiles and auto parts until the U.S. International Trade Commission conducted a study of the well-being, health, and vitality of the U.S. automotive industry.

The U.S. government conducted an investigation on automobiles and automotive parts under Section 232.

“This investigation could lead to the imposition of tariffs, which would adversely impact the success and growth of American manufacturing businesses by placing manufacturers at a competitive disadvantage to their global counterparts and eroding U.S. jobs,” the Motor & Equipment Manufacturers Association said in a statement.

“Such actions would weaken our nation’s economy by harming U.S. manufacturers of vehicles and vehicle parts and would deter U.S. investments in new innovative technologies. In addition, tariffs on imported parts will lead to increased repair costs, forcing U.S. consumers potentially to forgo necessary repairs and routine maintenance. Foregoing maintenance undermines the fundamental operating safety and efficiency of consumers’ vehicles.”

The group maintained its support of efforts to address the Trump administration’s use of making national security claims in order to impose tariffs on materials and products that are “essential” to keeping American companies competitive.

“This legislation, as well as other bills, calls for common-sense fixes to the Section 232 provision that currently allows the president to unilaterally impose tariffs citing national security,” MEMA said.

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