Gov. Kay Ivey told Commerce Secretary Wilbur Ross earlier this month that Alabama could lose approximately 4,000 jobs as a result of automotive tariffs the Trump Administration is considering.
Gov. Kay Ivey speaks at the Etowah County megasite at Little Canoe Creek Tuesday, June 26, 2018.
In a June 20 letter to Ross, Ivey laid out what she said was a "threat to Alabama's economy," saying she strongly opposed "any efforts that may harm those companies that employ thousands of Alabamians and contribute billions to our economy."
"I respectfully ask that you not recommend to President Trump the levying of trade tariffs on automobiles and automotive parts," Ivey wrote.
The letter came in response to an announcement that the Commerce Department, at Trump's direction, would initiate an investigation into whether imported automobiles and automotive parts constitute a national security threat. Various reports have the Trump Administration considering a 20 to 25 percent tariff.
Ivey, in Etowah County today for an industrial recruitment event, said she spoke "directly" with Vice President Mike Pence last week while she attended a meeting of the National Space Council Users' Advisory Group in Washington.
"I've sent several letters not only to the president but also to our Congressional delegation, so they know about our concerns," Ivey said. Last week Ivey also released a statement opposing tariffs.
On Monday, Moody's Investor Service said tariffs would have negative effects "for nearly every segment of the auto industry — carmakers, parts suppliers, car dealers, and transportation companies."
Ivey's two-page letter to Ross mentioned the beginning of the state's automotive history with Mercedes-Benz's decision in 1993 to build the state's first automotive plant, and the new Mazda-Toyota plant announcement earlier this year. More than 57,000 Alabamians are currently employed in the automotive sector.
Ivey also highlighted Alabama's status as the nation's No. 3 auto exporting state, with $10.9 billion in auto exports last year. The state's largest importers - Canada, China, Germany, Mexico and Japan - are all countries which may fire back their own tariffs in response, she wrote.
"However, all of this growth could be stymied if tariffs are imposed on the goods we export around the world," she stated. "Estimates show that a ten percent decrease in Alabama-made vehicle exports could result in the loss of approximately 4,000 jobs in Alabama. Such a loss would be devastating to thousands of families across our state."
On Friday, Ross commented in an email, "We have received approximately 2,500 comments already and expect more by the midnight deadline tonight. The purpose of the comment period and of the public hearing scheduled for July 19th and 20th is to make sure that all stakeholders' views are heard, both pro and con. That will enable us to make our best informed recommendation to the President."
Ivey Letter to Ross by William Thornton on Scribd