Truck and automobile components and parts manufacturers came out strongly against President Trump’s latest threat to impose a 5% tariff on imported goods from Mexico, saying that it would only serve as an additional tax on the American people and put jobs and investment in the U.S. at risk.
The Motor & Equipment Manufacturers Association, which includes the commercial truck focused Heavy Duty Manufacturers Association stated that it shared the President’s concerns about security at the border but said that imposing tariffs on imported goods would not provide a more secure border.
MEMA is strongly urging the President to withdraw his tariff threat on Mexican imports and to return to work with Congress to ratify the U.S. Mexico Canada Agreement (USMCA).
On May 30, President Trump announced that he would impose a series of escalating tariffs on Mexico until the country makes moves to curb illegal immigration across the U.S. Mexico border. The first tariff of 5% on Mexican imports would take effect on June 10, before doubling to 10% on July 1 and capping off at 25% by October.
According to MEMA, two-way trade with Mexico in auto parts totaled $165 billion in 2018, equivalent to $452 million worth of goods a day.
MEMA says that widely applied tariffs would raise the price of motor vehicle parts, cars, trucks and commercial vehicles for American consumers. The group is also worried about the tariffs impact on the larger USMCA trade agreement that has been in the works and which MEMA supports.
“This agreement must be in place for our industry to continue to support manufacturing job growth in the U.S. The potential ripple effects of the proposed Mexican tariffs on U.S., North American and global trade efforts could be devastating,” MEMA stated in a release.
Originally posted on Trucking Info