US auto parts industries question Canadian tariffs

US auto parts industries questioned tariffs on Canadian aluminum imports from Canada.

Last week, President Donald Trump authorized the reimposition of 10% tariffs on imports of unalloyed raw aluminum from the United States from Canada, sparking the reaction of the Canadian government to initiate a process to fix retaliation against American products for about 2,700 millions of dollars.

The Engine and Equipment Manufacturers Association (MEMA), representative of the US auto parts sector, criticized Trump’s move.

“These tariffs on supposedly growing imports from an important trading partner of the Agreement between Mexico, the United States and Canada (T-MEC) will take effect on August 16. Canada has announced retaliation against US imports of a similar amount. US exports of refrigerators, tires, golf clubs and other aluminum products will face Canadian retaliation,” MEMA said.

MEMA groups more than 1,000 companies that manufacture auto parts, components, technologies and systems for passenger vehicles and heavy trucks.

Auto parts and aluminum

“These are tough times and many companies are struggling to keep payroll. The last thing companies need is additional fee increases on needed materials,” MEMA said in a statement.

«Recovering unilateral tariffs on aluminum from Canada is unjustified and will hurt a key ally,» he added.

Canada is the largest source of US imports of unalloyed raw aluminum, accounting for nearly two-thirds of total imports of these items from all countries in 2019 and approximately 75% of total imports in the first five months of 2020.

«The action will also have an adverse impact on American consumers who are already suffering by increasing the costs of new vehicles, as well as the auto parts needed to repair and maintain motor vehicles,» said MEMA.

The US aluminum industry is largely opposed to the tariffs.

“We are incredibly disappointed that the administration failed to listen to the vast majority of domestic aluminum companies and users in reinstating Section 232 tariffs on Canadian aluminum … This reckless action on a key trading partner undermines the benefits of the agreement at a time when American businesses and consumers can less afford it,” said the Aluminum Association.