Recently, a 25 percent tariff went into effect on a list of Chinese goods, and many MACS members have voiced concerns about the impact the tariffs will have on all sectors of our industry.
In the May issue of MACS ACtion, Keith Leonard, MACS’ general counsel warned that tariffs were “a two-edged sword.”
On July 2, the Auto Care Association issued a press release detailing what it called the “unintended consequences that may ensue by imposing tariffs on imported autos and auto parts.” In its release, the Auto Care Association cited an economic study by John Dunham and Associates, “which found that a 25 percent tariff on imported auto parts could cause a reduction of 17,800 jobs in the auto parts manufacturing sector, resulting in $1.4 billion in lost wages. The study further predicts that 6,800 jobs would be lost by vehicle repair shops and an additional 85,200 jobs in the auto care wholesale and retail segment due to lower demand. These are mostly small family-owned businesses that would suffer severe economic harm should a 25 percent tariff be levied on autos and auto parts.”
The complete Auto Care Association press release can be found here.