A small group of U.S. lawmakers earned praise from the Motor and Equipment Manufacturers Association (MEMA) last week by introducing a bipartisan congressional effort to reform the Presidential process of using national security to impose tariffs.
In a statement released Thursday, MEMA applauded the legislation and its call for common-sense fixes to the Section 232 provision that currently allows the president to unilaterally impose tariffs citing national security. The Senate bill was introduced by Senators Rob Portman (R-Ohio), Doug Jones (D-Ala.), Joni Ernst (R-Iowa), Lamar Alexander (R-Tenn.), Dianne Feinstein (D-Calif.), Deb Fischer (R-Neb.), Kyrsten Sinema (D-Ariz.) and Todd Young (R-Ind.). A corresponding House bill was introduced by Rep. Ron Kind (D-Wis.), Reps. Jackie Walorski (R-Ind.), Terri Sewell (D-Ala.) and Darin LaHood (R-Ill.).
According to MEMA, the legislation if passed would require the Department of Defense to investigate and justify the need for tariffs based on national security, and the Department of Commerce would be charged with developing a recommendation to the president on how to respond. Should the president impose tariffs, Congress would have an opportunity vote on a disapproval resolution on the president’s actions.
In a letter to Congress dated Jan. 30, MEMA wrote the legislation is “critically needed in order to ensure a proper weighing of the overall national interest before tariffs or quotas go into effect. It is clear that these overall interests were not properly weighed in the case of steel and aluminum and there are proposals for future use in the autos sector that make this need for a balanced weighing of interests even more apparent.”
President Trump has used Section 232 to impose 25 percent tariffs on steel and 10 percent tariffs on aluminum from most countries around the world. MEMA has warned that these tariffs prevent or encumber motor vehicle parts suppliers’ ability to obtain certain types of steel and aluminum and will jeopardize production of critical products made for the U.S. defense industry and destabilize a growing U.S. manufacturing job base.
Though the president announced Tuesday he may extend the deadline to reach a trade agreement with China and thus avoid higher tariffs, his administration also is conducting an investigation on automobiles and automotive parts under Section 232. MEMA states these tariffs, if imposed, would adversely impact the success and growth of American manufacturing businesses by placing manufacturers at a competitive disadvantage to their global counterparts and eroding U.S. jobs. Such actions would weaken our nation’s economy by harming U.S. manufacturers of vehicles and vehicle parts and would deter U.S. investments in new innovative technologies.
In addition, MEMA says tariffs on imported parts will lead to increased repair costs, forcing U.S. consumers potentially to forgo necessary repairs and routine maintenance. Foregoing maintenance undermines the fundamental operating safety and efficiency of consumers’ vehicles.
