ACA, MEMA support 'truce' on new China import tariffs

WASHINGTON — The Auto Care Association (ACA) and Motor & Equipment Manufacturers Association (MEMA) are voicing their support for the Trump administration's decision to delay raising import tariffs on $200 billion worth of imports from China.

"We are pleased that President Trump and President Xi (Jinping) were able to reach a temporary trade deal during the G20 summit in Buenos Aires to not raise tariffs on $200 billion worth of imports from China," ACA President and CEO Bill Hanvey said.

"Tariffs inhibit the growth of our industry and make it more expensive for consumers to maintain and repair their vehicles."

Messrs. Trump and Xi pledged during the recent the Group of 20 summit in Argentina to halt the imposition of new tariffs for 90 days as the world's two largest economies negotiate a lasting agreement.

Mr. Hanvey added that the ACA is "encouraged" by the Trump administration's commitment to engaging with the Chinese government in order to reach an agreement with respect to forced technology transfer and intellectual property protection.

"We are hopeful that the upcoming negotiations will resolve many of our long-standing concerns in these areas," he said.

MEMA said it is "encouraged" by the tariffs development and reports that China has pledged to increase purchases of American products.

"We hope that this will serve as a starting point or additional negotiations, and an agreement in the future that will allow U.S. companies to remain competitive in a global marketplace while protecting intellectual property (IP) rights," the trade group said.

"MEMA supports bilateral engagement, where China and the U.S. work together to protect the valuable IP of our members. This can include leveraging the powerful relationships the U.S. has with other trading partners to pressure China to enforce their own IP laws and comply with international IP laws and regulations."

MEMA "repeatedly and consistently" has expressed its view that the tariffs on hundreds of billions of dollars' worth of imports from China will be a tax increase on American consumers by increasing the costs of new vehicles and of maintaining the hundreds of millions of vehicles on the roads.

MEMA also has urged the administration repeatedly to protect IP in more effective and targeted means rather than broadly applied tariffs. For decades MEMA has advocated for strong global protections of IP investments.

MEMA represents more than a thousand companies that manufacture parts and components for motor vehicles in the U.S.