SEMA Welcomes Congressional Hearing on Steel Tariffs

 
WASHINGTON (March 25, 2003) - SEMA, the Specialty Equipment Market
Association, applauds Congressional concern about the unintended
consequences of the steel tariffs currently imposed upon U.S. manufacturers.
The tariffs negatively impact the price of consumer goods.
 
The "Steel Safeguard Program" may have imposed a significant hardship on the
automotive aftermarket and other industries and ultimately upon consumers of
automotive accessories and products, according to statements submitted by
SEMA to the U.S. House Ways and Means Trade Subcommittee, chaired by Rep.
Phil Crane (R-IL). SEMA pointed out that steel tariffs have been harmful to
SEMA member companies involved in manufacturing steel products, but also on
other steel consuming industries across the country. The Subcommittee will
hold a hearing on the impact of the Bush Administration's Section 201 steel
tariffs on Wednesday, March 26.
 
In a related action, the House Ways and Means Committee, chaired by Rep.
Bill Thomas (R-CA), directed the U.S. International Trade Commission (ITC)
to conduct a "Section 332" fact-finding investigation on the tariffs' impact
on steel consumers. The ITC will consider whether the tariffs have been more
productive for producers or detrimental for consumers during the first half
of a scheduled three-year duration. As a result, the ITC could recommend
reduction or repeal of the tariffs.
SEMA members felt the impact of the steel tariffs almost immediately after
they were instituted in March 2002, reporting steel shortages and price
hikes of up to 50% on raw steel. While they have struggled to adjust to the
tariffs, purchasing steel remains costly, difficult and subject to
uncertainties.
 
"The tariffs are squeezing profits and threatening the ability of some
specialty aftermarket vehicle parts manufacturers to remain in business,"
said Brian Caudill, SEMA director of government and public affairs.
"Companies are responding to the pressure by passing price increases along
to the American consumer, slowing production lines and laying off workers,
or considering permanent relocation of manufacturing facilities abroad. Some
businesses have been forced to purchase components from overseas, at the
cost of American jobs. In all cases, affected companies have experienced
lower profit margins and are unable to reinvest monies into their
businesses."