The American International Automobile Dealers Association (AIADA) and the Auto Care Association recently opposed the U.S. House Ways and Means Committee’s proposed border adjustment tax.
The tax would add a 20 percent tariff on imported goods and services, which would cause automobile part prices to increase $20 billion nationwide. Owners of light vehicles would pay $34.6 billion more annually, according to the Center for Automotive Research, marking an average of $2,000 per vehicle.
Both groups praised the committee’s recent hearing, while expressing hope that Congress will reconsider the tax and replace it with pro-growth policies that will favor both businesses and customers.
“Consumers will be stuck with the tax and the repercussions will be devastating,” Bill Hanvey, Auto Care Association president and CEO, said. “Our industry employs nearly five million people in the U.S. and they need jobs and business security, not theoretical assumptions to keep the economy moving forward.”
AIADA represents America’s 9,600 international nameplate automobile franchises which collectively accounted for 59 percent of vehicle sales in the U.S. in 2016.
The Auto Care Association represents approximately 150,000 independent automotive businesses that perform vehicle service and repair as well as businesses that manufacture, distribute and sell motor vehicle accessories, equipment, tools, and materials, parts and supplies.