The Automotive Jobs Act, introduced by U.S. Reps. Terri Sewell (D-AL) and Fred Upton (R-MI), would instruct the International Trade Commission (ITC) to conduct a study on the economic importance of automotive manufacturing before automobile and auto-part tariffs can be applied.
The legislation would require the ITC to analyze how an increase in auto manufacturing costs would affect jobs, how automotive plants help a region attract and expand nonautomotive jobs and wages, and how plants affect the unemployment rate, per capita income, and education level in the communities they are located.
The ITC also would be required to identify the number of component parts for automobiles that are not produced in the U.S. and would become unavailable if prohibitively high tariffs are imposed on imports.
“This administration has overreached its Section 232 authority by claiming that cars and auto parts threaten American national security,” Sewell said. “An independent study by the ITC would ensure that U.S. trade policy takes into consideration its impacts on our American workers and consumers.”
A 25 percent tariff on imported vehicles and auto parts would increase vehicle costs and decrease U.S. auto sales up to 2 million units annually, according to the Center for Automotive Research.