NADA ‘Extremely Concerned’ About Proposed Metal Tariffs

Citing consumer affordability of vehicles, the National Automobile Dealers Assn. has begun to lobby Washington policymakers who are fleshing out the details of President Donald Trump’s recently announced tariffs on imported steel and aluminum.

“Whatever the issue, NADA will always be on the side of maintaining vehicle affordability for our customers,” NADA President and CEO Peter Welch says in a statement.

“We are extremely concerned about what any proposed tariff might mean for vehicle affordability and the ability of our customers to purchase the new cars and trucks they need to continue driving the American economy forward.”

NADA says it has joined the Alliance for Competitive Steel and Aluminum Trade, which was formed in this month by the National Foreign Trade Council, a 104-year-old business advocacy group with offices in New York and Washington.

In a press release the Alliance, which comprises some 30 associations representing U.S. manufacturing and agriculture interests, says it will meet with members of Congress and the Trump administration to express its “concern about the downstream effects of the proposed tariffs on imports of steel and aluminum…and the potential for foreign retaliation against the President's action.”

NADA holds its annual convention in Las Vegas this weekend, and there’s expected to be plenty of talk about the proposed tariff and how it might affect the auto industry, a major user of steel and, to a lesser extent, aluminum.  

General Motors issued a statement in March saying, in part, “We purchase over 90% of our steel for U.S. production from U.S. suppliers. We need to fully understand all the details in order to assess the potential impact, but we are encouraged by the temporary exemption for Canada and Mexico. In the near term, there will be little impact to us from the tariff itself. We will be impacted by any general U.S.-sourced steel price increases, but we do not expect a material impact given the majority of our contracts are longer term.”

For its part, Toyota deferred to a statement from the Alliance of Automobile Manufacturers, which says, in part: “Automakers already source the majority of their steel and aluminum from U.S. producers.

“However, these tariffs will result in an increase in the price of domestically produced steel – threatening the industry’s global competitiveness and raising vehicle costs for our customers. We encourage a careful re-evaluation of these tariffs, so they address legitimate concerns while not harming the users of these critical materials. “

NADA says rules currently being developed by the U.S. Department of Commerce will determine the potential impact on auto manufacturing and retailing.

“As these various scenarios play out, it is most critical for dealers to be part of a constructive dialogue,” Welch says. “NADA was an active participant throughout the entire tax reform process, and serving as a constructive partner allowed us to explain to key members of Congress just how damaging the loss of floor plan interest deductibility would have been to dealers, our customers and even the manufacturers. We will play a similar role here.

“As always, NADA will continue to work with the Trump Admin. and Congress to advocate for policies, including trade policies, that enable our customers to be the driving force behind our success and the success of the U.S. economy.”