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AED Alert: AED, Construction Groups Warn Tariffs on Allies Will Hurt Equipment Industry

by Kathleen Howell | Jun 15, 2018
On June 14, AED was joined by eight other major construction industry organizations on separate letters to Senate leadership and the Trump administration opposing the recently implemented tariffs on steel and aluminum imported from Canada, the European Union and Mexico.

Other signatories were the Association of Equipment Manufacturers, the Associated General Contractors of America, the American Road & Transportation Builders Association, the National Stone, Sand & Gravel Association, the Energy Equipment & Infrastructure Alliance, the American Concrete Pipe Association, the National Utility Contractors Association and the National Asphalt Pavement Association.

The letter to the U.S. Senate is in support of Sen. Bob Corker's (R-Tenn.) bipartisan legislation (S. 3013) that would require congressional approval of tariffs deemed national security-related under Section 232 of the of the Trade Expansion Act of 1962.

In the letters, the trade organizations expressed opposition to the tariffs on steel and aluminum, particularly highlighting the impact it will have on equipment prices. "The tariffs on Canada will result in a shortage of the raw materials used to manufacture construction equipment while driving up costs for contractors and other customers who purchase the machinery," the groups wrote.

AED and its construction industry partners also cautioned policymakers that the tariffs will only exasperate delays in manufacturers meeting customer equipment demand. The organizations stated, "The tariffs on Canada, the European Union and Mexico will further disrupt the supply chain, resulting in delays in product completion, an increase in costs for equipment purchasers and inadequate quantities of new construction equipment to help rebuild America."

Furthermore, the trade associations warned that the tariffs will negate many of the benefits of the new tax law, which ultimately will threaten economic growth and job creation in the United States.

To read the letter to the Trump administration visit, click here.

To read the letter supporting S. 3013 visit, click here.

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