Auto Care Association President and CEO Bill Hanvey testified before the US trade representative (USTR) on June 18 in Washington, DC on the proposed fourth section 301 tariff list on imports from China.

Hanvey spoke in favor of the Trump administration’s effors to address China’s trade policies, deemed unfair by the administration. However, Hanvey also warned the administration about the negative impact tariffs are having on the auto care industry’s supply chain.

Hanvey testified that Auto Care Asssociation members were experiencing difficulties due to the Section 301 tariffs, including financial strain from absorbing related costs, decrease in demand, 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.

He also said that the impact of the tariffs went beyond the cost of the tariffs.

“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.’”

The Auto Care Association has joined other trade associations and companies numbering above 600 in a nationwide campaign letter urging the Trump administration to avoid further tariffs and seek agreement with China.