In a letter sent to Direct of the National Economic Council Larry Kudlow, 159 members of Congress recently pressed the Trump Administration not to impose car and auto parts tariffs they fear may harm the U.S. auto industry.
The group, plucked from both sides of the political aisle, mentions such an effort would be something the industry neither asked for nor requires.
“We are convinced that the products hard-working Americans in the auto sector design, build, sell, and service are not a threat to our national security. We strongly urge you to advise the President against imposing trade restrictions that could harm the auto sector and the American economy,” the lawmakers wrote. “American auto manufacturers, parts suppliers and retailers, dealers, and vehicle service providers have not asked for and do not need protection. Tariffs on autos will raise prices for American consumers and lower demand, ultimately leading to decreased U.S. production, investment, and employment.”
This is not the first time members have attempted to fight section 232 tariffs on automobiles and automotive parts. Last year, a similar letter signed by 149 members of Congress went to Commerce Secretary Wilbur Ross, warning of negative impacts. Nevertheless, the Commerce Department’s Section 232 investigation proceeded unimpeded.
Beyond those immediately and intentionally hit by the tariffs, the Congress members also fear vehicles outside the intended scope of the investigation will suffer from tariffs. Plus, it’s unlikely the targets of such tariffs would take them lying down.
“Parts used in passenger vehicles may overlap with motorcycles, recreational vehicles, construction equipment, heavy-duty trucks, farming equipment, powersports vehicles, and others,” the members wrote. “Additionally, inevitable retaliatory tariffs from countries around the world, including our close allies, will cause further harm to American farmers, manufacturers, and consumers.”
Raised prices and lowered demand would be the result, in their view. As such, they are urging the Administration to do everything it can to avoid further trade restrictions on the U.S. auto sector.