Auto Care Association CEO Bill Hanvey: Tariffs Are Hurting the Aftermarket, Making Roads Less Safe

Auto Care Association CEO Bill Hanvey: Tariffs Are Hurting the Aftermarket, Making Roads Less Safe

Hanvey voiced the association’s support for the Trump administration’s efforts to address China’s unfair trade policies but warned the administration of the negative impact tariffs are having on the industry’s supply chain.

On June 18, Auto Care Association President and CEO Bill Hanvey testified before the U.S. Trade Representative (USTR) in Washington, D.C., on the latest proposed fourth Section 301 tariff list on imports from China. 

Hanvey voiced the association’s support for the Trump administration’s efforts to address China’s unfair trade policies but warned the administration of the negative impact tariffs are having on the industry’s supply chain.

Hanvey testified that Auto Care Association members are experiencing many challenges as a result of the Section 301 tariffs, including heavy financial strain from absorbing tariff-related costs, decrease in demand for products, margin pressure and negative cash flow.

“As prices increase, not only are American jobs lost, but safety-critical maintenance is deferred, thus making American roads less safe,” Hanvey said in his testimony.

Hanvey went on to explain that the impact of tariffs extends far beyond just the cost of the tariff.

“One unintended consequence that every member is facing is the burden tariffs are having on company resources,” Hanvey said in his testimony. “According to a member, ‘Understanding the impact has consumed resources in purchasing, product management, sales and customer service functions that otherwise would be devoted to growing the business.’”

Earlier this week, the Auto Care Association submitted comments to the USTR regarding the impact of the proposed Section 301 tariffs on the aftermarket’s competitivenes. The Auto Care Association also joined 660 other trade associations and companies in a multi-industry, nationwide campaign letter urging the administration to avoid additional tariffs and reach a resolution with China.

The tariffs are part of the USTR’s Section 301 investigation to address unfair acts, policies and practices by China that are related to technology transfer, intellectual property and innovation. Three tariff lists on imports from China already have been finalized and duties have gone into effect.

For more information about the Auto Care Association’s trade initiatives, contact Angela Chiang, director, international affairs, at [email protected] or visit autocare.org/trade.

You May Also Like

MEMA Aftermarket Suppliers Achieves UAF Gold Lifetime Trustee Status

The designation goes to “outstanding donors who significantly support the UAF’s mission.”

MEMA UAF Gold Lifetime Trustee

MEMA Aftermarket Suppliers has elevated its commitment to the University of the Aftermarket Foundation (UAF) by achieving the status of a Gold Lifetime Trustee.

“The Gold Lifetime Trustee designation from the UAF is a recognition given to outstanding donors who significantly support the UAF’s mission of providing scholarships and educational opportunities to the next generation of aftermarket professionals,” UAF said in a news release.

VIPAR Heavy Duty Supplier Advisory Council Reviews Performance, Strategy

At its semi-annual meeting, the council discussed current and expected market conditions and opportunities.

VIPAR Heavy Duty
MANN+HUMMEL’s NA Aftermarket Brands Support Right to Repair

The Right-to-Repair movement has gained momentum in recent years.

MANN+HUMMEL Right to Repair
Auto Care Testifies Against Idaho Bill Targeting Non-OEM Parts

The bill would add language to an existing law that requires insurers to notify consumers in writing if they specify aftermarket parts for a collision repair.

Idaho SB 1233
Trade Associations Urge Congress to Restore R&D Tax Deduction

A change to the U.S. tax code has been “particularly burdensome for the auto industry, threatening thousands of jobs.”

Restore R&D Credit

Other Posts

ASE Ed. Foundation, Auto Dealer Associations Tackle Tech Shortage

Three student competitions are currently scheduled for 2024, with more being planned.

ASE Education Foundation Auto Dealers
Northwood U Announces 2024 Class of 20 Under 40 Honorees

The program recognizes NU alumni who are ambitious professionals doing great things in their careers, organizations or communities.

Northwood University 20 Under 40
Two NexaMotion Units Expand Product Offerings, Open New Locations

Transtar Industries and C&M Auto Parts are expanding.

NexaMotion Expanding
Trend Hunter’s Chief Futurist to Keynote Auto Care Connect

Auto Care Connect is scheduled for May 5-8 at the Hyatt Regency Chicago.

Armida Ascano