ACA President Testifies Before Department of Commerce

July 19, 2018—Today, Auto Care Association President and CEO Bill Hanvey testified before the Department of Commerce (Commerce) in Washington, D.C. on the Section 232 National Security Investigation of Imports of Automobiles and Automotive Parts.

In Hanvey’s testimony, the Auto Care Association urged the Trump administration to consider the severity of unintended consequences that may ensue by imposing of tariffs on imported autos and auto parts, including the negative impact it may have on the U.S. economy and jobs, our global competitiveness, and U.S. consumers and families.

“The auto industry has an international footprint and comprises integrated supply chains that are long and global,” Hanvey said. Hanvey also noted that imports, including raw materials and intermediate goods, allow our industry to remain competitive domestically and to export globally, while supporting a broad range of U.S. jobs.

“A recent economic study completed for the Auto Care Association 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,” Hanvey said. “The study further predicts that 6,800 jobs would be lost by vehicle repair shops and an additional 85,200 jobs would be lost in the auto care wholesale and retail segment due to unperformed maintenance.

“We support the Trump administration’s efforts to improve U.S. competitiveness in the global marketplace, but strongly recommend that the administration refrain from trade restrictions that would undermine the auto industry,” Hanvey said. “We urge the administration to seek solutions that protect U.S. investments, facilitate trade and create competitive value chains that benefit the global growth of our industry.”