Ann Wilson, the senior vice president of government affairs for the Motor & Equipment Manufacturers Association (MEMA), recently testified before the U.S. House of Representatives Ways and Means Committee on the impacts of tariffs on the motor vehicle supplier industry.
The hearing was focused on the effects of tariff increases on the U.S. economy and jobs, and included testimony from several organizations affected by tariffs.
Wilson said MEMA supports the administrations’ agenda to assure “free, fair and reciprocal trade” but is concerned about the potentially adverse impact on manufacturing jobs resulting from the sections 232 and 301 tariffs.
The Section 232 tariffs are on steel and aluminum imports, with a stated goal of increasing capacity utilization among U.S. steel-producing companies, and the 301 tariffs cover many goods imported from China, including aluminum and steel products, machinery equipment and parts, and motor vehicles and parts.
“I know all of you have heard repeatedly that the vehicle industry counts on a global marketplace,” Wilson said. “But our industry also counts on regulatory and market certainty. Our industry buys the vast majority of its steel and aluminum domestically but imports specialty materials as well as finished parts.
“Often, these imports are manufactured further and made into other parts, subcomponents or systems by U.S. workers at facilities all over the country. This allows the U.S. supply chain, as part of the global economy, to be competitive and prosperous, creating hundreds of thousands of U.S. jobs.”
MEMA also asserted that tariffs could negatively impact motor vehicle parts suppliers in written testimony submitted to the committee.
“The combined impact of these tariffs has thrown many of our member companies close to a financial crisis and has made some of them question their future investments in the U.S. Tariffs will have a negative impact on these manufacturers, the jobs they create, and ultimately the American consumer,” Wilson said.
“MEMA urges this committee to work with the administration to reset our discussions with our trading partners to pursue our joint goal of free and fair trade.”
For more information on the impact on suppliers and MEMA’s efforts on trade, visit the association’s trade resource page.