UAW Reiterates Call for Higher Tariffs on Cars and Parts at USMCA Hearing

You Auto Know 02/09/24

UAW Reiterates Call for Higher Tariffs on Cars and Parts at USMCA Hearing

At a hearing on Wednesday held by the U.S. Trade Representative (USTR) on the U.S.-Mexico-Canada Agreement (USMCA), a representative of the United Auto Workers (UAW) once again called on the administration to raise tariffs on autos and auto parts, echoing written comments submitted by the autoworkers union several weeks ago. In addition to Jason Wade, Top Administrative Assistant to UAW President Shawn Fain, other hearing witnesses included Matt Blunt, President of the American Automotive Policy Council; Ann Wilson, Executive Vice President at MEMA the Vehicle Supplier Association; and Ken Carmon, Vice President of the International Motor Vehicle Trade Association.

The U.S. currently imposes a 2.5 percent tariff on passenger cars, and a 25 percent tariff on light trucks to countries with most-favored nation status, but has a 27.5 percent tariff on Chinese vehicles. The hearing was held to solicit industry feedback on enforcement of the USMCA’s rules of origin and whether they remain effective amid the industry's transition to electric vehicles and other advancements in technology. USTR must submit the results of its review to Congress by July 1. 



The EPA’s proposed rule, which would effectively require two thirds of new vehicles sold in the U.S. be all-electric by 2032, is expected to be finalized in the coming weeks. Late last year, the House of Representatives passed the Choice in Automobile Retail Sales (CARS) Act, which would permanently prohibit the EPA from finalizing the rule. Dealers are urged to contact their Senators and ask that the Senate follow suit and pass the CARS Act TODAY.



Quotes of the Week

Building a business in America requires a willingness to innovate, to take chances, and to engage with your lawmakers at every level. Through AIADA, dealers are securing the future of their stores and their employees by making their voices heard in Washington, D.C.”

            -Anthony Brownlee, 2024 AIADA Chairman (


"If we want greater adherence to the USMCA's 'rules of origin' provisions, the consequences for noncompliance [have] to be greater than 2.5 percent."

-Jason Wade, Top Administrative Assistant to UAW President Shawn Fain (Automotive News)



In case you missed it, last week Anthony Brownlee of Brownlee Automotive in Castle Rock, Colo. was named 2024 AIADA Chairman.  Check out the press release here!

Friday Feel Good

Here is just one recent example of how dealers are doing good in their communities:

Many of the Thompson Organization’s dealerships supported the "Helping Hands for the Holidays" initiative, uniting the community and fostering goodwill in collaboration with local non-profit organizations. The organization had multiple holiday drives including - Thompson Lexus Willow Grove: A Double Dose of Generosity; Thompson Lexus Doylestown: Supporting the Warminster Food Bank; Thompson BMW: Caring for the Community; Thompson Toyota: Supporting Wildlife Rehabilitation with Aark and Thompson Collision Center: Shop with a Cop.

We want to hear more about how you are supporting your local community – tweet us at @AIADA_News and use the hashtag #DealersDoGood.