Bill Hanvey, president and CEO of the Auto Care Association, has urged President Trump on behalf of the organization not to follow through on his threat to increase tariffs on $200 billion in imported goods from China as soon as this week.

“The proposed sudden increase from 10% to 25% would have an immediate negative impact on not only the U.S. businesses that manufacture and distribute these parts, but the motoring public who will see higher prices on a wide range of products, including important safety-related components,” Hanvey said. “In 2018, China was the second largest source of auto parts imported into the U.S., second only to Mexico and totaling over $20.1 billion worth of product. Furthermore, the president’s suggestion that a 25% tariff could be levied on an additional $325 billion in imports from China, without knowing which goods would be impacted, creates even more uncertainty for the business community.

“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. U.S. companies and consumers end up bearing the brunt of these ‘taxes’ on imported product through disrupted supply chains, increased prices and job losses,” Hanvey said.

Last October, a 10% tariff on $200 billion worth of Chinese imports, which included tires and tire-related materials, went into effect. The tariff was slated to increase to 25% by the start of 2019, but Trump delayed the increase in March. New passenger, truck and bus radials are on the list as well as ag, construction and mining tires and their retread equivalents. Tire-related materials, including tire cord fabric of various materials and rubber innertubes, also made the list.