There’s no denying the major impact that heavy equipment manufacturers have on the dirt moving industry. Their health and well-being translates into prosperous businesses and communities across the nation. The Association of Equipment Manufacturers (AEM) continues to advocate for the issues that can improve the state of the industry. To review, the following are the current policy priorities that the AEM continues to pursue. These are taken directly from the AEM website.
The Highway Trust Fund
The Highway Trust Fund (HTF) is the predominant vehicle for supporting federal investment in surface transportation infrastructure construction, maintenance and repair. The HTF faces a projected shortfall in the hundreds of billions through 2024, though, because its primary revenue source – the gas tax – has not kept pace with inflation. To date, Congress has not passed.
Secs. 232 & 301 Tariffs
Tariffs continue to take a toll on U.S. businesses, manufacturers, farmers, communities and families across the country. Here’s how both the Section 232 and 301 tariffs are making an impact on equipment manufacturers.
Section 232: By imposing tariffs on steel and aluminum from the EU, Canada and Mexico, the administration has started a trade dispute with our nation’s largest trading partners and allies. These tariffs continue to lead to increasingly more harmful retaliatory actions, resulting in lowered U.S. exports and the risk of losing market access for U.S. manufactured goods and agricultural commodities. President Trump has advanced a number of our priorities like tax reform and regulatory reform to help bolster domestic manufacturing. Now is not the time to reverse those gains by raising the cost of doing business for equipment manufacturers. If President Trump wants to boost domestic steel production, the best way would be to invest in our infrastructure system, and focus on streamlining regulations
Section 301: The U.S. has placed a 25% tariff on many different types of construction and agricultural equipment and parts imported from China. The tariffs were also be placed on parts manufactured in China by American companies incorporated into value-added manufacturing in the U.S. using American labor. China continues to put in place reciprocal tariffs targeting a variety of U.S. products including manufactured goods and agricultural products. The tariffs risk eliminating many of the economic gains made from last year’s tax reform. AEM continues to highlight the economic damages caused by these ongoing tariffs and is pressing the administration to find alternative ways to pressure our trading partners for unfair trading practices.
United States Mexico Canada Agreement (USMCA)
Equipment manufacturers support the USMCA and advocates for its quick implementation. Ratifying the USMCA will ensure North America’s manufacturing competitiveness and supports our industry’s nearly 1.5 million men and women working across the U.S. and Canada. Canada and Mexico are two of the largest export markets for U.S. manufacturers of agricultural and construction machinery, and our industry depends on cross-border trade and investment to continue economic growth.
Renewable Fuel Standard
AEM supports a comprehensive energy policy that addresses domestic energy production including conventional and renewables with a focus on implementing the Renewable Fuel Standard (RFS) as Congress intended.
The Association recently wrapped up its Summer 2019 Board Meeting. Here is Chair John Lagemann of Deere & Company giving a recap of the meeting.