A lengthy list of U.S. business associations and groups, including several related to the auto parts industry, have sent a letter to the current administration opposing the imposition of tariffs. They contend these tariffs could potentially harm the U.S. economy and its global competitiveness, according to the letter.
“The imposition of sweeping tariffs would trigger a chain reaction of negative consequences for the U.S. economy, provoking retaliation; stifling U.S. agriculture, goods and services exports; and raising costs for businesses and consumers,” the letter states. “The Administration should not respond to unfair Chinese practices and policies by imposing tariffs or other measures that will harm U.S. companies, workers, farmers, ranchers, consumers and investors.”
The business associations and groups say tariffs would be largely harmful, with the potential to negatively affect U.S. companies that sell component pieces of final products exported from China; harm community service providers who rely on consumer electronics and various imported goods; and tariffs on product components may affect manufacturing exports by increasing costs to obtain “key inputs and disrupting existing supply chains,” which would hurt American jobs.
According to the letter, manufactured goods accounted for more than 85 percent of U.S. exported goods in 2017, amounting to $1.3 trillion.
The groups that signed the letter state that there are other ways to address China’s policies and practices that wouldn’t have such a negative impact on the U.S. economy or undermine the benefits of the tax reform. They say it is imperative for the administration to work with like-minded partners to address Chinese trade and investment policies.
“We urge the Administration not to impose tariffs and to work with the business community to find an effective, but measured, solution to China’s protectionist trade policies and practices that protects American jobs and competitiveness,” the letter reads. “Consistent with Section 304 of the Trade Act of 1974, we request that the administration allow industry experts the opportunity to comment on these issues, including the economic impact of any potential actions.”
Industry-related associations that par-took in the letter include AutoCare Association, CAWA Auto Parts and the Retail Industry Leaders Association (RILA).