Pub. 4 Issue 4

15 Issue 4 2018 The first job for dealers and our part- ners on the manufacturing and supply side is to educate the administration on the complexity and interconnectedness of the auto industry. The notion that there are truly “domestic” and “international” brands simply isn’t true any longer. Manu- facturers are globally integrated, and their supply chains routinely span international boundaries. In fact, many international brand vehicles are assembled in the U.S. with mostly American-made parts, while some domestic brands have models that are manufactured abroad and imported here. Consequently, some domestic brands could get hit harder with tariffs than some international brands. More to the point, though, it’s our cus- tomers who would feel the most dramatic effect of broad import tariffs through a com- bination of higher prices and fewer choices, as all imported vehicles and evenU.S. built vehicles get dramatically more expensive, and some imported models are no longer offered for sale in the U.S. altogether. Even from a distance, it’s easy to see that broad-based tariffs on vehicles and auto parts would result in seismic unin- tended consequences. So, as we have done so many times before, NADA is rolling up its sleeves and getting to work. We are hard at work educating the administra- tion about the reality of the auto industry, and we are urging Congress to exercise oversight on this process and identify the potential economic impacts of any new tariffs. We are working on an indepen- dent economic impact study designed to measure the potential impact that tariffs would have on dealerships and their American customers, and we will present the results of that study to the Department of Commerce through our testimony at a July public hearing. And we will be clear throughout: NADA is not opposed at all to the presi- dent’s goals of addressing unfair trade prac- tices and preservingAmerican jobs. But we must find the right tools for accomplishing those goals. Overbroad tariffs on autos and auto parts are the wrong tools because they will raise prices on new cars and trucks and jeopardize affordability and choice for mil- lions of our customers.  Lutz is2018NADAchairmanandpresidentofExtreme Chrysler-Dodge-Jeep-Ram in Jackson, Mich.