While the Trump administration’s tariffs on imported Chinese goods haven’t had an impact on AutoZone’s bottom line, customers can expect to pay higher prices for auto parts as the trade war drags on.
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.
AutoZone CEO Bill Rhodes said it’s “too early for us to know the implications” of the tariff increase on the $200 billion worth of Chinese goods.
Auto Care Association Opposes Trump Administration’s Proposal to Increase Tariffs on Chinese Imports
“While the Auto Care Association supports the Trump administration’s efforts to address China’s unfair trade practices and is encouraged by recent progress made through trade talks, we oppose the use of tariffs as a negotiating strategy,” Auto Care Association President and CEO Bill Hanvey wrote.
While the majority of automotive executives believe the United States-Mexico-Canada Agreement (USMCA) will have a positive impact on their companies in the long run, many of them also believe the newly negotiated trade pact will increase their production costs in the short term.
Co-organized by the Automotive Aftermarket Suppliers Association (AASA) and Messe Frankfurt, the summit is scheduled for Thursday, Nov. 29, in Shanghai.
Last week, the USTR finalized the third Section 301 list of $200 billion in Chinese imports that would be subject to additional tariffs of 10 percent, effective Sept. 24.
Tariffs on Chinese Imports Would Push Vehicle Owners to Delay Critical Repairs, Auto Care Association Says
Auto Care Association President and CEO Bill Hanvey warned the Trump administration that the cost of an additional tariff would cause severe economic harm to the U.S. automotive industry and U.S. consumers.