MEMA Warns that Tariffs on Motor Vehicle Parts Will Cause Job Losses

Date: June 29, 2018

Washington, D.C. – In comments submitted June 29 to the U.S. Department of Commerce, the Motor & Equipment Manufacturers Association (MEMA) strongly opposes broad, unilateral, and import-restrictive measures – such as tariffs, quotas, or other adjustments – on imported automobiles or motor vehicle parts being explored by the department as directed by the Trump administration. MEMA strongly urged the Department of Commerce to remove motor vehicle parts from the scope of its investigation and not to recommend any adjustments to imported parts.

A Section 232 national security investigation of imports of automobiles and automotive parts was triggered by the administration in May. The investigation affecting the automotive industry come on the heels of additional tariffs and trade actions that impact MEMA members, including Sec. 232 tariffs on steel and aluminum, Sec. 301 tariffs on imports from China, and the stalled renegotiation of the North American Free Trade Agreement.

“MEMA remains very concerned that the pattern of recent actions from the administration signal that tariffs are one of several tactics that would be considered and imposed,” MEMA’s statement says. “Counterproductive unilateral actions will place manufacturers at a competitive disadvantage to their global counterparts, erode U.S. jobs and growth, and will not protect the national security of the United States. 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 the detailed comments, MEMA provides data and details to support that:

  • Tariffs will jeopardize 871,000 parts manufacturing jobs in the United States

  • Tariffs will harm the global competitiveness of the United States

  • Tariffs or quotas will diminish investment in the United States

  • The broad scope of the investigation has negative consequences

MEMA is a leading voice in Washington and around the country advocating that open and fair trade is essential to the success of motor vehicle parts suppliers, the largest sector of manufacturing jobs in the United States. MEMA urges the administration to reconsider this investigation and pursue alternative ways to forge more positive trade relationships with our trading partners while allowing American businesses to operate freely in the global marketplace. In addition to joining with more than 55 other trade associations calling for greater congressional oversight of U.S. trade policies, MEMA has held dozens of meetings with congressional leaders and administration officials to educate them about the risks of tariffs to the largest sector of manufacturing jobs in the U.S.

For more details visit the MEMA Trade Resources Page.

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