Steel Tariffs Are Needed to be Lowered from Auto Parts Industry

Some of the automotive suppliers from U.S. havefrom U.S.A they have not felt relief from the existed
demanded for exclusions from the high tariffs whichguidelines of the administration's exclusion
were mostly agreed by the Bush administration andprocess.The process has described mainly speciality
almost all companies filed range from Tier 1 producersforms of steel from abroad which could not been
to the small Tier 3 Producers.Motor& Equipmentcreated or bought from the U.S. market. The U.S.
Manufacturers Association (also named MEMA), takingsteel producers have reached exclusion in the first
into account the possibilities of serious job losses hastour for importing slabs and flat-rolled steel products
required for an expand of existent guidelines of theat low prices, while steel costumers have gained
second stage of exclusions and 'to consider theminimal relief. Moreover, competitors from abroad
critical factors of price and supply steel as part of itshave gained a more powerful control over the U.S.
decisions''s.Despite the fact that MEMA is prone tomarket by buying steel at normal prices and by
support an existent of domestic steel industry, itsexporting finished or partially finished products at
tariffs had a strong negative effect on thelower tariffs.MEMA claims is heavily concerned by the
automotive suppliers, according to Chris Bates thefact that high steel prices will threaten the viability of
president of MEMA. This supply constraints and thea powerful American manufacturing center' without a
increases in price which are generally a result of thesecure supply of raw materials and a steady cost
high steel tariffs are now obliging large Tier 1structure, U.S. auto parts and components
Automotive suppliers to start creating or buyingmanufacturers will not be able to secure future
components that they have previously created andbusiness and to ensure their competitive stance in
purchased from foreign sources.According to whatthe global automotive industry', MEMA claimed.MEMA
MEMA claims, a tendency of responding to thewill continue as strong supporter of the House
increase of steel tariffs is to reduce the productionResolution, introduced by representative Joe
and to start thinking about the movement of someKnollenberg on Oct. 9. The legislation which happens
manufacturing facilities permanently abroad. MEMAto be bipartisan has gained support in the 107th
also claim that the shift of movement facilities andCongress and it has been introduced again in
jobs to other countries where prices remain thetheHouse in 3003. This Resolution of Knollenberg's
same is growing fast.The industry of auto partsasks the president to ask that the International
suppliers haven't benefited from the first round ofTrade Comission should reconsider the effect of the
the process of exclusion, taken care of by thetariffs on steel consumption industries in U.S.The
Department of Commerce and the U.S. tradepresent analysis must be included in the ITC's
Representatives's office.Taking into account the factmidterm review of the administrations's steel
that the U.S. manufacturers of automotive parts andprogram, which should be released by September
components reach a price of 95 percent of the steel2003, said MEMA.