SEMA warns current tariffs are a tax on American companies and consumers

The Specialty Equipment Market Association (SEMA), Diamond Bar, Calif., has cautioned President Trump and Congress that tariffs imposed by the U.S. government are harming American companies, workers, and consumers. SEMA member companies are facing higher-priced steel and aluminum because of global tariffs.

The U.S. government also has initiated questionable tariffs on Chinese products, and retaliatory tariffs levied by China and many American allies are in the works, SEMA states.

"The United States has helped create a global free trade system that includes mechanisms for addressing unfair trade practices," said SEMA President/CEO Christopher J. Kersting. "SEMA cautions the president and lawmakers to work with our trading partners and employ U.S. law judiciously. The current tariffs are a tax on American companies and consumers that are causing unnecessary harm."

In addition, the president has directed the U.S. Department of Commerce to investigate whether imported automobiles and auto parts pose a threat to America’s national security. While the premise of the investigation has not been clearly communicated, imposing the suggested tariffs of up to 25 percent would have damaging consequences for the industry and automotive enthusiasts, the association reports.

Member companies employ more than 1 million Americans who produce, sell, and install specialty auto parts on every type of automobile built in the U.S. and overseas. The supply chain for these parts is global, integrated, and complex, states the association. Beyond domestic sales, member companies have a robust export market.

Association members have seen steep price hikes for steel and aluminum and now are having to make tough decisions about passing those costs along to the consumer. Marketplace confusion with respect to country exemptions and company exclusions remains unresolved.

"SEMA welcomes efforts by the U.S. government to protect American companies and their customers from unfair trading practices," said Kersting. "We urge the president and Congress to pursue trade infringements in a fashion that does not inflict unintended economic harm."