US trade organizations urge Trump not to impose auto tariffs

0 Comment(s)Print E-mail Xinhua, April 6, 2019
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Eight U.S. trade organizations have urged President Donald Trump not to impose import tariffs on cars and car parts, saying an investigation that could potentially legitimize the duties "poses serious economic threat" to U.S. economy and the wellbeing of its auto industry.

"Any remedy proposing quotas or tariffs should not be implemented," the groups said in a letter dated Thursday, urging that Trump "not impose tariffs on any imported vehicle or motor vehicle parts."

They said that implementation of the tariffs "will eliminate the growth in U.S. manufacturing, and the corresponding increase in jobs and investment."

Signatories of the letter include American Bus Association, American Rental Association, Associated Equipment Distributors, Association of Equipment Manufacturers, The Heavy Duty Manufacturers Association, National Marine Manufacturers Association, Remanufacturing Industries Council, as well as Truck and Engine Manufacturers Association.

"Implementing these tariffs threatens the jobs of millions of American workers and would likely result in the loss of billions of dollars to the U.S. economy," the Association of Equipment Manufacturers said in a statement posted Friday on its website.

The Commerce Department submitted the investigation report, which is based on Section 232 of the Trade Expansion Act of 1962, to Trump on Feb. 17.

The president, who has long threatened the auto tariffs, has 90 days following the submission to decide whether to implement the punitive duties.

"If the administration places tariffs on the auto industry, our industry would be unintentionally hit with additional tariffs on top of the tariffs we are already paying on necessary steel and aluminum, as well as imports from China," the AEM said in its statement.

Trump on Thursday threatened to impose tariffs of 25 percent on car imports from Mexico should the country fail to make extra efforts to reign in the flow of illegal migrants and drug traffickers from Central America into the United States.

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