AIA Canada, along with Auto Care Association and the Automotive Aftermarket Suppliers Association (AASA), submitted comments to the Department of Commerce (Commerce) concerning the Section 232 National Security Investigation of Imports of Automobiles, including Cars, SUVs, Vans and Light Trucks, and Automotive Parts.
Section 232 investigations are conducted to determine the impacts of imports on U.S. national security.
Evidence cited by the U.S. Department of Commerce suggesting that imports from abroad have eroded the U.S. auto industry (in turn, hurting the American economy) provide rationale for the investigation:
“…during the past 20 years, imports of passenger vehicles have grown from 32% of cars sold in the United States to 48%. Now, American-owned vehicle manufacturers in the United States account for only 20% of global research and development in the automobile sector, and American auto part manufacturers account for only 7% in that industry” (U.S. Department of Commerce).
Our comments to the U.S. Department of Commerce were as follows:
• Canada and the U.S. have a highly integrated auto supply chain
• tariffs would have a severe negative impact on the North American auto industry
• an increase in the price of auto parts and components would hurt consumers, jobs and small businesses