Deal Creates Uncertainty for the Industry
Alexandria, VA – Cody Lusk, the President and CEO of the American International Automobile Dealers Association (AIADA), today testified in support of the international auto retail industry during the U.S. International Trade Commission's (ITC) hearing on the impact of the United States-Mexico-Canada Agreement (USMCA). His comments focused on the impact of the agreement on the cost to consumers and the uncertainty the USMCA creates in regard to the possibility of new auto tariffs.
"AIADA strongly supports pro-growth economic policies and is relieved that a trilateral agreement was reached with Canada and Mexico," said Lusk. "However, we remain concerned about the potential for increased costs and lost auto jobs due to onerous new origin requirements, possible 232 tariffs, and crippling uncertainty stagnating an otherwise humming economy. Ultimately, we believe that the USMCA does more to manage trade than to expand it."
America's 9,600 international nameplate auto franchises, many of which are family-owned businesses, last year accounted for 57 percent of all retail vehicle sales in the U.S. They employ more than 578,000 Americans, resulting in a payroll of $34 billion and an additional 548,000 indirect jobs, representing the retail side of an international auto industry that has invested $82 billion in U.S. operations and more than doubled its production in the U.S. over the past 15 years. In 2017, factories operated by international manufacturers produced 5.2 million vehicles. For more on the impact of America's international nameplate dealers on our economy visit AIADA.org/our-impact.
