Automakers join together to protest steel tariffs

A group of six leading Japanese and US automakers have joined forces to oppose penalty tariffs on corrosion resistant carbon flat steel products. The group, comprised of General Motors, Toyota, Ford, DaimlerChrysler, Honda, and Nissan, say these trade protections, put in place in 1993, make it hard for them to remain competitive because they drive up the cost of steel and limit supplies. GM's VP of government relations Ken Cole wrote in a letter to congress, speaking for the group of companies, “The strength of our vehicle assembly operations is reliant upon the ability to obtain key materials dependably and at globally competitive prices.” The automakers also say that the steel industry no longer needs these protections since it has rebounded in recent years. At the current time, six countries are affected by antidumping and countervailing duty penalties for corrosion resistant carbon steel flat rolled products. They are: Australia, Canada, France, Germany, Japan and Korea. The US International Trade Commission will hold a hearing October 17 to decide whether or not to end the penalty tariffs.