BETHESDA, Md. – July 2,
2018 – The Auto Care Association
last Friday urged the Trump administration to consider the severity of
unintended consequences that may ensue by imposing tariffs on imported autos
and auto parts, including the negative impact it would have on both the U.S.
automotive industry and the jobs created by these imports, but also the U.S.
economy at large.
submitted to the U.S. Department of Commerce regarding the Section 232 National Security Investigation
of Imports of Automobiles, Including Cars, SUVs, Vans and Light Trucks, and
Automotive Parts, the association explained that the auto care industry’s “ability
to source parts and components globally supports U.S. auto exports, provides
U.S. consumers with a wider selection of vehicles and parts, and keeps vehicle
repair and maintenance costs affordable for working families.”
The association’s comments further explained that “the availability of
affordable high-quality parts from foreign sources creates thousands of jobs
that might be threatened should the Trump administration move forward with a
tariff on vehicles and vehicle parts.”
Included in the comments was a recent economic study completed for the
Auto Care Association by John Dunham and Associates, which found that a 25
percent tariff on imported auto parts could cause a reduction of 17,800 jobs in
the auto parts manufacturing sector, resulting in $1.4 billion in lost wages. The
study further predicts that 6,800 jobs would be lost by vehicle repair shops
and an additional 85,200 jobs in the auto care wholesale and retail segment due
to lower demand. These are mostly small family-owned businesses that would
suffer severe economic harm should a 25 percent tariff be levied on autos and
Because the auto industry operates on a global platform, the reality is
that goods are rarely designed, manufactured and consumed in one country.
Technological efficiencies, lower trade costs and improved logistics have
allowed companies to tighten and optimize supply chains. Imports help companies
lower costs and improve product quality, allowing them to remain competitive
domestically and export globally.
The study also found that imposing additional tariffs on auto parts and
components would increase their price substantially, making it more difficult
for working Americans to afford a new car or the cost of repairing the vehicle
they currently own. The study estimates that the cost of car ownership will
increase by more than $700 per year per household should the tariffs be
The Auto Care Association concluded its comments
to the Department of Commerce by recommending that the Trump administration “refrain
from trade restrictions that would undermine the auto industry, and instead
seek solutions that protect U.S. investments, facilitate trade and create
competitive value chains that benefit the global growth of our industry.”
For more information about
the Auto Care Association’s government affairs initiatives, please contact
Aaron Lowe at email@example.com.