WASHINGTON — The Auto Care Association (ACA) testified that the Trump administration's Section 301 import tariffs on automotive parts and components from China could result in higher prices for U.S. consumers and cause U.S. companies to be less competitive in the U.S. and in global markets.
In testimony May 14 before the Office of the U.S. Trade Representative (USTR) Aaron Lowe, senior vice president, government and regulatory affairs, said, "Our members report that a number of products included on the tariff list cannot be sourced in the U.S. as there are no U.S.- based factories producing some of these products.
"At the same time," he added, "minimal alternative sources exist, as China is the primary supplier to the world. Therefore, we do not see any benefits to the U.S. economy or U.S.-based manufacturers when imposing tariffs on these products, as sourcing would just shift to low-cost countries and would not alleviate the overall U.S. trade imbalance."
In his comments, Mr. Lowe stressed that the ACA supports the administration's efforts to address China's unfair trade policies, while at the same urging the administration to evaluate the potential economic harm and unintended consequences as the imposition of additional tariffs.
The tariffs are part of a proposed action by the administration to address unfair acts, policies and practices by China that are related to technology transfer, intellectual property and innovation.
The ACA earlier joined a coalition of 100-plus trade groups and asked Congress to intervene in President Trump's plan to levy 25-percent tariffs against some 1,200 products imported from China.