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March 29, 2018 02:00 AM

SEMA voices opposition to 'harmful' tariffs

Tire Business Staff
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    WASHINGTON — The Specialty Equipment Market Association (SEMA) is adding its voice to the chorus of opposition to the elevated import tariffs President Trump has enacted against steel and aluminum, expressing concern about the impact on auto parts pricing.

    "The specialty auto parts industry employs more than a million American workers who will be affected by the proposed tariffs," SEMA Chairman Wade Kawasaki said.

    "These U.S. workers produce products to personalize and enhance vehicle performance — from wheels and exhausts to engines and grilles — and many of these parts contain metals that are now subject to tariffs that will harm the industry."

    Price hikes began to show up in recent months under the threat of potential tariffs, SEMA said. Now fear of supply chain disruption beyond the metal market is real as other nations consider retaliatory trade measures.

    "We urge the president and lawmakers to use trade laws strategically so that unfair trade practices are addressed without harming U.S. businesses," SEMA President and CEO Christopher Kersting said.

    "SEMA has joined forces with other domestic manufacturer associations to express concerns with the current approach and the potential downstream damage to domestic industries and American consumers."

    Although the steel and aluminum tariffs are only now going into effect, there is marketplace confusion surrounding their potential impact, SEMA said. Government officials were caught off guard when the metal tariffs were imposed on a global scale and at higher levels than anticipated. This has resulted in a scramble to create an exclusion program for certain countries and companies and the exclusions are still uncertain.

    SEMA is monitoring this matter and will keep members informed as developments unfold.

    Other groups that have come out against the tariffs include the Auto Care Association, the National Retail Federation, the U.S. Chamber of Commerce and U.S. Tire Manufacturers Association.

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