MEMA Applauds Sen. Alexander's Call for Steel Tariff Repeal

RESEARCH TRIANGLE PARK, N.C., July 18 -- In a July 16 statement on the floor of the U.S. Senate, Sen. Lamar Alexander (R-Tenn.) called for the repeal of the Section 201 steel tariffs. Alexander highlighted the adverse impact of the tariffs on the U.S. automotive parts and components industry, which serves as a leading employer in his home state of Tennessee. The Motor & Equipment Manufacturers Association (MEMA) supports Sen. Alexander's statement and urges the administration to consider the unintended consequences of the tariffs on U.S. automotive suppliers and other steel- consuming manufacturers.

While stressing his support for the president's economic stimulus package, Alexander noted the larger risk posed by the tariffs' effects on steel- consuming industries and the nation's economic health. "As our economy recovers -- and I believe that it is -- the last thing our country needs is a wave of plant closings in the auto and auto parts industry. But that is exactly what will happen if the steel tariffs continue."

The senator acknowledged the president's efforts to save steel-producing jobs, but cautioned that the tariffs may actually drive U.S. manufacturing jobs overseas. "At a time when our greatest challenge seemed to be how do we keep our manufacturing jobs from moving to China or Mexico ... the auto parts suppliers in Tennessee seemed like a godsend. They were good jobs that seemed likely to stay -- stay, that is, unless some unexpected new costs forced the auto plants and suppliers to look outside the United States for a more competitive environment."

"We applaud Sen. Alexander's efforts to keep this issue in the forefront of the congressional and national debate," said Ana Lopes, MEMA director of government relations. "U.S. automotive suppliers employ thousands in Tennessee, as well as Ohio, Illinois, Michigan and Indiana. At this time, the tariffs are placing a competitive advantage in the hands of our industry's foreign competitors."

In his comments, Alexander noted that, "The tariffs have become a job killer in the United States and a jobs growth program for Korea, Japan, Germany and other countries that produce quality auto parts."