Auto Care Association Urges Reconsideration of Proposed Shipbuilding Remedies in U.S.

The Auto Care Association, along with organizations representing other industries, recently submitted a letter to the Office of the U.S. Trade Representative asking for reconsideration of proposed fees on Chinese maritime operators and maritime operators using or having pending orders of Chinese-built ships.

According to a recent press release, ACA and over 300 organizations signed a letter to USTR opposing its ship remedy proposal, with ACA stating it would lead to increased costs, reduced competitiveness, and significant disruptions to domestic logistics and supply chain networks.

Additionally, ACA, along with a group of more than 30 organizations representing a wide range of industry sectors, commissioned a study conducted by Trade Partnership Worldwide, LLC, for a look into the net economic impact of USTR’s shipbuilding remedies.

The study found that the proposed remedies would reduce output in the U.S. economy, and would likely worsen the trade deficit. While it may benefit the U.S. shipbuilding industry, it will have negative impacts on other sectors, including farming, manufacturing, and retail.

U.S. ports and related sectors are likely to experience negative output and employment, with these impacts sending ripples through the supply chain and affecting manufacturers, importers, retailers, and other stakeholders such as wholesale and retail trade, hospitality, and consumer services industries.