The U.S. International Trade Commission hearing on Thursday was intended to gather feedback on the economic impact of the proposed U.S.-Mexico-Canada free trade agreement, also known as the USMCA.
This story by Eric Kulisch originally appeared in Automotive News Canada.
But industry groups spent most of their time warning about the ill effects from U.S. steel and aluminum tariffs, and potential new tariffs on autos and auto parts.
The Motor and Equipment Manufacturers Association and the Alliance of Automobile Manufacturers called on the administration to exempt Mexico and Canada from the 25 percent steel and aluminum tariffs, saying that the issue must be resolved before leaders sign the provisional trade deal at the G-20 summit at the end of the month.
Automakers and suppliers say they are paying 30 to 50 percent more for domestic steel because of the tariffs, threatening sales.
The White House has justified the tariffs on national security grounds.
Some analysts expect the Trump administration to replace the tariffs on Canada and Mexico with import quotas, as it did with South Korea, but the Aluminum Association is expected Friday to repeat its call for full exemptions – including no quotas. In a letter to President Donald Trump last week, it supported trilateral efforts to protect against transshipment of subsidized imports of Chinese aluminum but said trade measures on regional metals are not needed.
The industry groups testified that the auto rules of origin are very complicated and opaque so far, making it difficult to assess how the changes from NAFTA will impact the industry.
