More than 140 bipartisan U.S. Congressional representatives recently sent a letter to Department of Commerce Secretary Wilbur Ross concern that tariffs would negatively impact the automotive and auto parts industry.
“We support the Department of Commerce as it seeks a level playing field for our manufacturers and workers in the global marketplace and penalizes bad actors,” the letter said. “We believe, however, that the taxpayer dollars being used by the Commerce Department for this investigation would be better spent on other endeavors. We do not believe that imports of automobiles and automotive parts pose a national security threat. Rather, we believe the imposition of trade restrictions on these products could undermine our economic security.”
The auto industry comprises between 3 percent and 3.5 percent of the nation’s gross domestic product, and in some sectors, employment is higher than pre-recession levels.
The Congress members urge the Department of Commerce to consider a list of factors when imposing trade restrictions.
These factors include acknowledging American families will experience higher vehicle prices and will delay purchases and forego vehicle maintenance; many U.S. allies are planning retaliation against vulnerable industries; and unintended consequences will hurt other industries that rely on products that could be subjected to trade restrictions.