Auto Parts Manufacturers Hail Bush Announcement Eliminating Steel Tariffs

WASHINGTON, Dec. 4, 2003 -- The Automotive Coalition on Steel Tariffs, representing manufacturers of automotive parts and components, applauds President George W. Bush's announcement today eliminating the Section 201 steel tariffs. This action marks a strong stride forward in the Administration's efforts to aid U.S. manufacturing and to help ensure a robust economic recovery. The steel tariffs, which ran as high as 30 percent, took effect in March 2002 and caused large increases in raw material costs to automotive suppliers and aftermarket equipment manufacturers as well as disruptions in supply and steel quality problems.

"American automotive parts manufacturers and our workers are very pleased by the President's decision," said Scott Meyer, President and COO of Ken-Tool and Chairman of the Automotive Coalition on Steel Tariffs. "The tariffs created additional challenges to our industry's competitive stance and potential growth. The President's decision is going to help keep jobs and production in America and to help us effectively compete on the global playing field."

President's Bush's original mandate included a provision, requiring a midterm review of the tariffs in 2003. On September 19, 2003 the International Trade Commission (ITC) issued a report, as part of the midterm review, demonstrating $680 million in losses to automotive parts suppliers and other steel consumers as a result of the Section 201 tariffs. As required by the U.S. House Ways & Means Committee, the ITC also included an analysis on the unintended effects of the steel safeguard tariffs on consuming industries after a strong effort on behalf of automotive parts and component manufacturers and other steel consumers -- led by Congressman Joe Knollenberg (R-Mich.) in the House and Sen. Lamar Alexander (R-Tenn.) in the Senate.

"Congressman Knollenberg has been a tremendous champion for our industry since the beginning," Meyer said. "He understood what we were going through and that the entire situation with the tariffs was unsustainable. Moreover, Sen. Alexander's ceaseless efforts to bring the facts to the attention of the Administration and to highlight the specific plight of auto parts manufacturers in his home state through numerous statements on the Senate floor were critical to reaching this final resolution. Their work has helped us to maintain good manufacturing jobs in the United States. We greatly appreciate the efforts of these two individuals as well as those of many other members of Congress."

In the ITC report, nearly three-fourths of automotive parts and component manufacturers reported hikes in contract prices for steel. The study also noted that 87 percent of manufacturers of automotive products reported that steel prices in the United States were higher than global prices and 31 percent reported that their customers were now buying finished parts or assemblies overseas as a result of the tariffs.

The Automotive Coalition on Steel Tariffs represents U.S. manufacturers of automotive products, including original equipment and aftermarket parts, components and accessories, and specialty and high performance automotive products. Manufacturers of automotive parts, components and related equipment employ 2.2 million Americans in large, medium and small companies in all 50 states.

For more information about the Automotive Coalition on Steel Tariffs contact Neal Zipser, MEMA, at nzipser@mema.org , Lee Kadrich, AAIA, at lee.kadrich@aftermarket.org , or Stuart Gosswein, SEMA, at stuartg@sema.org .