Trade war leads to after-sales market cost pressure. Major automobile industry associations in the United States oppose tariff policies
worldwide, in the complex supply chain and sales field, executives in the automotive aftermarket are evaluating the direct impact and collateral damage caused by President Donald Trump's trade war caused by tariffs, which affects both partners and competitors
according to Article 232 of the United States national security regulation, the U.S. Department of Commerce has also launched work to investigate the relationship between the entire international automotive industry and the domestic economic interests of the United States
"we must also begin to have a wide range of applications in oil printing, household appliances, building materials, transportation, new energy, safety protection and other fields, putting American workers first." Trump said in defending tariffs. He emphasized a long-standing belief that other countries have been using some unfair trade advantages against the United States. However, he seems to ignore the country's dependence on Global trade channels
after trump announced the imposition of 25% tariffs on steel and 10% tariffs on aluminum, the G7 summit alliance countries (Canada, France, Britain, Germany, Japan, Italy), 28 EU Member States and Mexico upgraded from the initial war of words to the introduction of a tit for tat retaliatory tariff policy
China is also fighting with the United States in the financial field
Aaron Lowe, senior vice president of regulatory and government affairs at the auto care association, said: "At present, there are too many variables to accurately assess the consequences, but the scope of impact does range from minimal to punitive and destructive. The U.S. government seems to have no intention of easing its confrontational attitude towards its allies. It is not clear whether this strategy is conducive to U.S. enterprises, or leads to a trade war that may have a negative impact on the global economy. Some enterprises will be directly affected by the president's tariffs on China, which will be adjusted by 232 The automobile and auto parts industry will bear the direct consequences. "
the results of this far-reaching Ministry of Commerce survey will not be released until February 2019
Luo indicates: "We are also worried about the impact of retaliatory tariffs that may be imposed by other countries. In addition, as the global market reacts to tariff 232, it is difficult to imagine that auto parts will eventually not be affected by the rise in steel and aluminum prices. Together with some influential allies, we are trying to understand the impact of the trade in cars and auto parts on national security. It is difficult to know until we get more details about products The specific impact of this action. However, considering the possibility of rising prices of cars and auto parts, this action will hardly have a positive effect, and may have a significant and negative economic impact on our members and car owners. "
mark nantais, President of the Canadian vehicle manufacturers' Association, said: "Considering that the automotive industry is highly concentrated in Canada, Mexico and the United States, the policy of imposing tariffs will undermine our competitiveness in the world and have a devastating impact on thousands of jobs supporting the supply chain in the three countries. It is very disappointing to see that allies and partners impose tariffs on each other, because it will only raise product prices in highly integrated economies. We hope the North American government Find a positive trade solution as soon as possible, so as not to harm the interests of our common customers. "
an escalating trade war may bring indirect damage, which may not be obvious in the United States. Through the national public radio station, a worker from Pennsylvania realized that import. Therefore, the research on the reinforcement, toughening and cost of aerogel has become the key to its wide use as a high-performance light transmission and heat insulation material in the field of building energy conservation. Steel is 25% more expensive, and these steel are made into coils in their factories and sold to automobile manufacturers. The worker originally supported Trump's vigorous implementation of the tariff system, but now the trump supporter shouted, "wait a minute, pause!"
"the automobile tariff system proposed by trump has turned American automobile manufacturers and workers into scapegoats." The Peterson Institute for international economics, headquartered in Washington, predicts that if the U.S. government finally implements a 25% tariff on all imported cars, including parts, finished vehicles, off-road vehicles, trucks and trucks, U.S. domestic production will decline by 1.5%, eventually leading to the unemployment of 195000 American workers and reducing the labor force of the entire industry by 1.9%
Harrison, executive director of strategic communications at the American Chamber of Commerce, said: "It is easy for people to get caught up in the trade policy whirlwind set off by Washington, but ignore the larger economic picture and the true significance of all this to the United States. Today is a new tariff policy for a specific product or country, followed by the retaliatory tariff policy of our trading partners. Further, there may be two situations, either a promising major breakthrough or a setback in the negotiation of the North American Free Trade Agreement."
citing the reliability analysis compiled by the American Chamber of Commerce, Harrison said that under the influence of expanding automobile tariffs, up to 624000 American jobs were threatened. "This will hinder the development of U.S. automakers and parts companies, many of which are small businesses, and will cut 4% of expected production and 5% of labor force," he said
"one of the biggest paradoxes in the automotive industry is that the parts supplied to GM, Ford and Chrysler are not produced locally, but from all over the world." The automotive body parts Association (ABPA) said, "these enterprises combine parts and components, claiming that they are 'made in the United States', but in fact they are only' assembled in the United States'. Tariffs will lead to an increase in the price of parts and components required by OEMs, and the price in the after-sales market will also rise. This will lead to higher replacement costs of parts and higher insurance costs."ABPA also estimated that its 150 member companies and their related parts distributors may lose about 65000 jobs
"we believe that these tariff policies will not improve the automotive industry, will lead to thousands of American industries, will not improve U.S. homeland security, and will damage the rights and interests of American consumers." The organization said, "we will ask the U.S. government to stop promoting tariff policy and cooperate with our international trading partners in other ways to protect our economy and country."
the motor equipment manufacturers association (Mema) and the automobile care association are making a series of efforts to oppose tariffs before the talks. They have organized member meetings and worked with trade experts to try to stop Trump's policy. However, so far, the president has acted according to his will and refused to oppose itLowe said, "we are actively lobbying for this issue in the U.S. Congress - Congress also does not support the government's trade conspiracy."
Luo added: "we are working with those members who want to contact representatives of Congress to encourage them to tell their stories and opinions. Of course, the association has also submitted its own opinions. At the same time, we testify at the hearings of the Senate and the house of Representatives. We must continue to prove that consumers will be harmed, businesses will lose profits, and the overall economy will be negatively affected."
when talking about the importance of industry people formulating trade war battle plans, Luo suggested: "if they are not directly affected, they should at least evaluate the possible impact on the supply chain; if they are directly affected, they should formulate plan B to minimize the impact on costs."
prices rose sharply
entering the hot summer season, professional automotive and after-sales service providers are considering the consequences of tariffs and the possible adverse effects on the economy
Mike vandenboom, President of signature truck systems in Michigan, said: "it is not clear what the long-term impact of tariffs will be." This company supplies chassis systems for transportation trucks, large oil tankers, cranes, etc
"so far, we feel that the prices of aluminum and steel have increased to varying degrees, ranging from 3% to 10% Although most of the metals of this company come from China, the prices of imported raw materials are rising, and some of them come from Canada
vandenbum said that the core traditional systems and chassis units supplied by automotive OEMs may also be more expensive. Of course, the situation may be improved. The company is likely to have to raise prices together, which may be $per car. "This is likely to make our business difficult, and we are closely monitoring the development of the situation."
the RV market in the United States uses more than 1million metal propane cylinders every year for cooking and boiling water on the road. Including independent RV, towing camper RV and all terrain large RV, 90% of the vehicles in this field are exported to Canada, accounting for 10% of the total automobile exports of the United States. Mexico is also one of the major countries exporting RV, accounting for 2% of the export marketJay landers, vice president of government affairs of the recreational vehicle industry association (RVIA), said: "The new tariff policy will have a negative impact on the RV industry. Many suppliers use steel and aluminum, even companies that purchase from China. Our members are at the peak of the industry, and the production and sales volume have set a record. At present, we are not sure whether the tariff will affect our development speed."
"although the RV industry made in the United States is prone to small piston damage and oil leakage, the vast majority of aluminum materials come from China. Our members said that the domestic aluminum price has increased by 10% - 40% Mike Ochs, director of federal government affairs of RVIA, added, "the rise in domestic aluminum prices will be passed on to consumers, which will threaten the vigorous development of the RV industry. This is the consequence of tariffs."
with the warming weather, the $41.2 billion special vehicle market has ushered in new business opportunities, but this market is also facing a sharp rise in prices. According to the special equipment Market Association (SEMA), their members have to make difficult decisions to pass on costs to consumers
the association has more than 1million members and produces, distributes and retails a variety of products, including customized wheels, turbochargers, lighting equipment, exhaust systems, suspensions, truck covers, mobile electronics, appearance and performance parts. "The supply chain of these products is international, inherited and complex. In addition to domestic sales channels, SEMA's member companies also have a strong export market."
christopher rsting, President and CEO of SEMA, said, "the United States has helped establish a global free trade system, including a mechanism to address unfair trade practices. SEMA reminds the president and lawmakers that we need to work with our trading partners to apply U.S. laws wisely. The current tariff policy is disguised