Auto Care Association President and CEO Bill Hanvey testified Tuesday before the U.S. Trade Representative (USTR) in Washington, D.C. on the latest proposed fourth Section 301 tariff list on imports from China. Hanvey voiced our support for the Trump administration’s efforts to address China’s unfair trade policies but warned the administration of the negative impact tariffs are having on our industry’s supply chain.
Hanvey testified that our members are experiencing many challenges as a result of the Section 301 tariffs, including heavy financial strain from absorbing tariff-related costs, decrease in demand for products, margin pressure and negative cash flow. “As prices increase, not only are American jobs lost, but safety-critical maintenance is deferred, thus making American roads less safe,” Hanvey said in his testimony.
Hanvey went on to explain that the impact of tariffs extends far beyond just the cost of the tariff. “One unintended consequence that every member is facing is the burden tariffs are having on company resources,” Hanvey said in his testimony. “According to a member, ‘understanding the impact has consumed resources in purchasing, product management, sales and customer service functions that otherwise would be devoted to growing the business.’”
Earlier this week, the Auto Care Association submitted comments to USTR regarding the impact of the proposed Section 301 tariffs on our industry to remain competitive. The Auto Care Association also joined 660 other trade associations and companies in a multi-industry nationwide campaign letter urging the administration to avoid additional tariffs and reach a resolution with China.
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. Three tariff lists on imports from China have already been finalized and duties have gone into effect.
For more information about the Auto Care Association’s trade initiatives, contact Angela Chiang, director, international affairs, at angela.chiang@autocare.org or visit autocare.org/trade.
For the latest news and information on the global automotive aftermarket industry, visit https://aftermarketintel.com.
