Industry Behind Trump On Infrastructure, Divided On Tariffs

- Feb 15, 2019-

Representatives of tires, auto parts and related industries mostly reacted well to President Trump's State of the Union address, particularly his call for legislation to fund the IFR. Structural improvement.

However, they expressed some concern about tariffs, trade agreements and Trump's call for legislation to establish paid family leave.

"overall, our members support President Trump and I think they support this speech," said Roy Litterfield III, executive vice president of the Tire Industry Association, (Roy Littlefield III). "but in. The part of his speech sounded like a Democrat. "

In a partial speech on February 5, Trump called for "rebuilding America's shaky infrastructure."

He said: “I know that Congress is in a hurry to adopt an infrastructure bill-and I'm also eager to work with you on a new, important infrastructure investment bill.”

Trump called the former North American Free Trade Agreement a "disaster" and said he had met workers in many states with "dreams broken by the North American Free Trade Agreement."

"our new U.S.-Mexican-Canadian agreement will replace the North American Free Trade Agreement and create jobs for American workers," he said.

Trump said his tariffs on $250 billion worth of Chinese goods were entirely successful. "now our Treasury receives billions of dollars a month from a country that has never given us a cent," he said.

"I respect [the Chinese president] very much," Trump said. "We are working on a new trade deal with China." But it must include genuine structural reforms to end unfair trade practices. We have a long trade deficit and protect American jobs. "

As expected, Trump called on Congress to approve the reciprocal U.S. Trade Act, which would empower him to impose line-by-line tariffs on imports from countries he imports. It is determined that tariff or non-tariff barriers to American goods have been raised.

"if another country imposes unfair tariffs on U.S. products, we can impose exactly the same tariffs on the same product they sell," he said.

Trump said he was proud to be the first president to include a national paid family leave plan in the budget, "so that every new parent has the opportunity to connect with the new child," he said.

Anne Forestol Lu Ke, president and chief executive officer of the American Tire Manufacturers Association, said the Association was pleased with Trump's comments on infrastructure investment.

Lu Ke said: "the USTMA supports this commitment and believes that it is essential for the President and Congress to build sustainable, long-term funding for a major infrastructure package."

She said the new infrastructure investment also provides an opportunity for products such as rubber modified asphalt to be accepted in federally funded road projects.

However, Lu Ke said the government must be careful in formulating tariffs and trade policies.

"the stability and certainty of our supply chain is critical to the competitiveness of the U.S. tire manufacturing business and to the continued growth of our domestic business," she said.

"our mission is to improve the competitiveness of U.S. tyre manufacturers, and we will continue to oppose restrictive trade policies that increase costs or limit the supply of raw materials. She said materials, other raw materials and capital equipment.

While tire resellers and reformers generally support the Trump's economic and commercial policies, Littlefield said they had differences in tariffs.

He said returners are suffering huge losses as a result of competition from cheap Chinese tyres, but tire dealers hope the tyres will meet lower levels of demand.

The industry also worries about the repeal of NAFTA and whether Congress will ratify NAFTA, according to Littlefield.

"look at some of the manufacturers in our industry," he said. "they put a lot of money into the construction business in Mexico."

For tire dealers, Trump's advocacy of paid family leave is the most inexplicable part of the speech, according to Littlefield.