By Washington, D.C., Staff

The Internal Revenue Service issued a regulation to provide guidance for pass-through business owners when taking a 20% deduction under Section 199a of the 2017 tax overhaul law.

The tax law change will benefit small business owners who pay taxes on their personal tax returns—partnerships, limited liability companies, and S corporations. Any taxpayers who earn less than $157,500, or $315,000 for a married couple, can deduct 20% of the income they receive via pass-through businesses from their overall taxable income. Taxpayers earning above those amounts must meet certain tests to take the full deduction, such as the amount of W-2 employee wages paid in the business.

For more information, read IRS Final Rule for 20% Section 199a Tax Deduction.

Questions? Contact Stuart Gosswein at stuartg@sema.org.

By Washington, D.C., Staff

The U.S. Department of Commerce (DOC) has until February 17 to issue a report on whether imported automobiles and auto parts pose a threat to U.S. national security. Last May, President Trump directed the DOC to pursue the investigation which applies to all types of cars and parts, including new cars, classic cars, OEM parts and specialty auto parts. Global tariffs of as much as 20% to 25% could be imposed, in part to gain leverage as the United States pursues trade negotiations with the European Union, Japan, China and other countries.  Once the DOC has issued a report, the president has 90 days to decide what actions to take, if any.

Last year eight major trade associations formed the “Driving American Jobs” Coalition to oppose the potential tariffs. The group includes SEMA and represents the broad scope of the auto industry, from automakers and dealers to parts manufacturers, distributors, retailers and service providers. The Coalition has sought to convince the Trump Administration not to impose tariffs.

President Trump is using Section 232 of U.S. trade law, which delegates authority from Congress to the executive branch to put tariffs or quotas on imports that “threaten to impair” U.S. national security. Section 232 has generally been applied on a limited basis, targeting a few product lines. However, the current administration has used Section 232 more broadly—imposing sweeping 25% tariffs on foreign steel, 10% tariffs on imported aluminum, and threatening tariffs on auto imports. Legislation has been introduced that would require the U.S. Congress to approve or disapprove of imposing tariffs. SEMA supports the legislation to provide checks and balances when considering issues impacting the national interest.

If the DOC report concludes that imported automobiles or auto parts pose a threat, President Trump would have several options. They range from imposing global tariffs on all finished vehicles and parts to selectively imposing tariffs on products from certain countries. 

Domestic industries usually support tariffs but in this instance the auto industry is generally united in opposition. The reason may be that most companies now rely on a global supply chain and rules-based international trading system. While SEMA supports the Trump Administration’s efforts to ensure fair trade, tariffs threaten to disrupt the marketplace and impose an unanticipated tax on U.S. businesses.

SEMA has recommended other trade law mechanisms be employed first, such as filing product dumping and foreign subsidy action and working more closely with our international trading partners to contest unfair trade practices. 

For more information, contact Stuart Gosswein at stuartg@sema.org.

By Washington, D.C., Staff

The U.S. Department of Commerce (DOC) has until February 17 to issue a report on whether imported automobiles and auto parts pose a threat to U.S. national security. Last May, President Trump directed the DOC to pursue the investigation which applies to all types of cars and parts, including new cars, classic cars, OEM parts and specialty auto parts. Global tariffs of as much as 20% to 25% could be imposed, in part to gain leverage as the United States pursues trade negotiations with the European Union, Japan, China and other countries.  Once the DOC has issued a report, the president has 90 days to decide what actions to take, if any.

Last year eight major trade associations formed the “Driving American Jobs” Coalition to oppose the potential tariffs. The group includes SEMA and represents the broad scope of the auto industry, from automakers and dealers to parts manufacturers, distributors, retailers and service providers. The Coalition has sought to convince the Trump Administration not to impose tariffs.

President Trump is using Section 232 of U.S. trade law, which delegates authority from Congress to the executive branch to put tariffs or quotas on imports that “threaten to impair” U.S. national security. Section 232 has generally been applied on a limited basis, targeting a few product lines. However, the current administration has used Section 232 more broadly—imposing sweeping 25% tariffs on foreign steel, 10% tariffs on imported aluminum, and threatening tariffs on auto imports. Legislation has been introduced that would require the U.S. Congress to approve or disapprove of imposing tariffs. SEMA supports the legislation to provide checks and balances when considering issues impacting the national interest.

If the DOC report concludes that imported automobiles or auto parts pose a threat, President Trump would have several options. They range from imposing global tariffs on all finished vehicles and parts to selectively imposing tariffs on products from certain countries. 

Domestic industries usually support tariffs but in this instance the auto industry is generally united in opposition. The reason may be that most companies now rely on a global supply chain and rules-based international trading system. While SEMA supports the Trump Administration’s efforts to ensure fair trade, tariffs threaten to disrupt the marketplace and impose an unanticipated tax on U.S. businesses.

SEMA has recommended other trade law mechanisms be employed first, such as filing product dumping and foreign subsidy action and working more closely with our international trading partners to contest unfair trade practices. 

For more information, contact Stuart Gosswein at stuartg@sema.org.

By Kristopher Porter

The SEMA Businesswomen’s Network (SBN) is hosting an inaugural meetup at the Keystone BIG Show being held at the Gaylord Texan Resort & Convention Center. The event will be held on March 8, from 3:00 p.m. CST – 4:00pm CST in Grapevine, Texas.

All SBN members and those interested in learning about opportunities to support the advancement of women in the automotive industry are encouraged to attend. SBN leadership will be present to discuss the network’s initiatives, volunteer opportunities and additional ways to get more involved.

SBN members who are not attending the Keystone BIG Show are welcome to attend the meetup and also attend the BIG Show’s opening night keynote speaker and reception. RSVPs are required for all SBN members that are none-show attendees.

If you live in the greater Dallas-Fort Worth area and are a SBN member or you’re a registered Keystone Big Show attendee, stop by and enjoy an evening of light refreshments with fellow SBN colleagues. We look forward to seeing you there!

Get your tickets for the BIG Show.

For more information, contact SEMA Director of Networks, Bryan Harrison at bryanh@sema.org or 909-978-6691.

By Kristopher Porter

The SEMA Businesswomen’s Network (SBN) is hosting an inaugural meetup at the Keystone BIG Show being held at the Gaylord Texan Resort & Convention Center. The event will be held on March 8, from 3:00 p.m. CST – 4:00pm CST in Grapevine, Texas.

All SBN members and those interested in learning about opportunities to support the advancement of women in the automotive industry are encouraged to attend. SBN leadership will be present to discuss the network’s initiatives, volunteer opportunities and additional ways to get more involved.

SBN members who are not attending the Keystone BIG Show are welcome to attend the meetup and also attend the BIG Show’s opening night keynote speaker and reception. RSVPs are required for all SBN members that are none-show attendees.

If you live in the greater Dallas-Fort Worth area and are a SBN member or you’re a registered Keystone Big Show attendee, stop by and enjoy an evening of light refreshments with fellow SBN colleagues. We look forward to seeing you there!

Get your tickets for the BIG Show.

For more information, contact SEMA Director of Networks, Bryan Harrison at bryanh@sema.org or 909-978-6691.

By SEMA Washington, D.C., Staff

The tariffs being imposed are impacting most SEMA members directly or indirectly through their supply chains whereby raw materials and components are transformed into a final product.

Every business depends on predictable supply costs. When it comes to this basic entrepreneurial principle, 2018 was not a good year. The Trump Administration imposed a series of tariffs with little warning. These measures were intended to address unfair trade practices and encourage foreign nations to renegotiate trade pacts to remove or equalize duty rates. Unfortunately, it hasn’t exactly worked out that way. Make no mistake, SEMA supports the goal of fair trade but questions the methods being employed to bring other countries to the bargaining table. The results to date have been modest when compared to the upheaval being caused in the marketplace.  

It’s unclear how or when trade tensions will be resolved. That’s a problem—businesses need certainty. As this article is being written, it is unknown whether U.S./Chinese negotiations will result in tariffs being removed or increased on March 1, or whether President Trump will impose tariffs on imported automobiles and auto parts. What can be said with certainty is this: few if any companies budgeted for tariffs in 2018.  

Tariffs have traditionally been considered a last resort in trade battles. There are many other mechanisms that can be employed first, such as filing product dumping and foreign subsidy actions or pursuing emergency import safeguard protections. Sanctions can be imposed to address counterfeiting and other intellectual property disputes. Our international trading partners can also collaborate to work collectively to contest unfair trade practices.  

The tariffs being imposed are impacting most SEMA members directly or indirectly through their supply chains whereby raw materials and components are transformed into a final product. Some members may welcome certain tariffs, such as those imposed on Chinese products that compete with products made in the United States. However, if they used domestic steel or aluminum to produce their goods, prices for those commodities skyrocketed when the metal tariffs were imposed.  

Tariffs are a sledgehammer approach with unintended consequences. Once imposed, they become difficult to withdraw as other countries pursue retaliatory measures. In fact, tariffs may ultimately make U.S. manufacturers less competitive in a global economy, which has been reflected by the growing trade imbalance in 2018 even as tariffs have been both implemented and increased.  

One of the desired results of the Trump Administration tariffs is to coax companies to produce their products in the United States in order to create high-paying jobs domestically. When looking at how to increase American manufacturing, it’s important to understand that a decline in the number of U.S. jobs in this sector over the past few decades is largely the result of increased productivity, automation and U.S. companies availing themselves of efficiencies created by the global supply chain. After World War II, countries were encouraged to abandon protectionist trade policies and work within a rules-based, open trading system. Although globalization has created problems that need to be addressed, it has generally produced widespread benefits ranging from more prosperity, lower prices, greater consumer choice and easing of international tensions. 

Companies are now scrambling to address the impact of unexpected and significant tariffs on their supply chains. Some businesses are revisiting whether it is possible to source supplies domestically or from countries not subject to tariffs. Uncertainty clouds those decisions since domestic sources may be unavailable or not price-competitive. Further, a company may relocate its supply chain from one country to another to avoid tariffs, only to find that the Trump Administration has imposed auto-parts tariffs on that country as well.  

Other tariff side effects include stockpiling and hoarding. Companies have been stockpiling inventory to avoid threatened higher tariffs. That has resulted in warehouse storage costs, a higher national trade deficit and, with respect to steel and aluminum, artificial price spikes.  

Companies ultimately face the decision of how to pay for the tariffs, which are essentially a tax collected by the U.S. government. Choices include absorbing the costs, raising product prices, renegotiating supplier contracts, resourcing supplies, reducing spending in other areas to offset costs and laying off workers.

SEMA has joined forces with many other industry organizations in urging the Trump Administration and U.S. Congress to abandon unilateral tariffs as a tool for resolving trade disputes. We will keep you informed on progress to address these issues. 

By SEMA Washington, D.C., Staff

The tariffs being imposed are impacting most SEMA members directly or indirectly through their supply chains whereby raw materials and components are transformed into a final product.

Every business depends on predictable supply costs. When it comes to this basic entrepreneurial principle, 2018 was not a good year. The Trump Administration imposed a series of tariffs with little warning. These measures were intended to address unfair trade practices and encourage foreign nations to renegotiate trade pacts to remove or equalize duty rates. Unfortunately, it hasn’t exactly worked out that way. Make no mistake, SEMA supports the goal of fair trade but questions the methods being employed to bring other countries to the bargaining table. The results to date have been modest when compared to the upheaval being caused in the marketplace.  

It’s unclear how or when trade tensions will be resolved. That’s a problem—businesses need certainty. As this article is being written, it is unknown whether U.S./Chinese negotiations will result in tariffs being removed or increased on March 1, or whether President Trump will impose tariffs on imported automobiles and auto parts. What can be said with certainty is this: few if any companies budgeted for tariffs in 2018.  

Tariffs have traditionally been considered a last resort in trade battles. There are many other mechanisms that can be employed first, such as filing product dumping and foreign subsidy actions or pursuing emergency import safeguard protections. Sanctions can be imposed to address counterfeiting and other intellectual property disputes. Our international trading partners can also collaborate to work collectively to contest unfair trade practices.  

The tariffs being imposed are impacting most SEMA members directly or indirectly through their supply chains whereby raw materials and components are transformed into a final product. Some members may welcome certain tariffs, such as those imposed on Chinese products that compete with products made in the United States. However, if they used domestic steel or aluminum to produce their goods, prices for those commodities skyrocketed when the metal tariffs were imposed.  

Tariffs are a sledgehammer approach with unintended consequences. Once imposed, they become difficult to withdraw as other countries pursue retaliatory measures. In fact, tariffs may ultimately make U.S. manufacturers less competitive in a global economy, which has been reflected by the growing trade imbalance in 2018 even as tariffs have been both implemented and increased.  

One of the desired results of the Trump Administration tariffs is to coax companies to produce their products in the United States in order to create high-paying jobs domestically. When looking at how to increase American manufacturing, it’s important to understand that a decline in the number of U.S. jobs in this sector over the past few decades is largely the result of increased productivity, automation and U.S. companies availing themselves of efficiencies created by the global supply chain. After World War II, countries were encouraged to abandon protectionist trade policies and work within a rules-based, open trading system. Although globalization has created problems that need to be addressed, it has generally produced widespread benefits ranging from more prosperity, lower prices, greater consumer choice and easing of international tensions. 

Companies are now scrambling to address the impact of unexpected and significant tariffs on their supply chains. Some businesses are revisiting whether it is possible to source supplies domestically or from countries not subject to tariffs. Uncertainty clouds those decisions since domestic sources may be unavailable or not price-competitive. Further, a company may relocate its supply chain from one country to another to avoid tariffs, only to find that the Trump Administration has imposed auto-parts tariffs on that country as well.  

Other tariff side effects include stockpiling and hoarding. Companies have been stockpiling inventory to avoid threatened higher tariffs. That has resulted in warehouse storage costs, a higher national trade deficit and, with respect to steel and aluminum, artificial price spikes.  

Companies ultimately face the decision of how to pay for the tariffs, which are essentially a tax collected by the U.S. government. Choices include absorbing the costs, raising product prices, renegotiating supplier contracts, resourcing supplies, reducing spending in other areas to offset costs and laying off workers.

SEMA has joined forces with many other industry organizations in urging the Trump Administration and U.S. Congress to abandon unilateral tariffs as a tool for resolving trade disputes. We will keep you informed on progress to address these issues. 

By SEMA Washington, D.C., Staff

The tariffs being imposed are impacting most SEMA members directly or indirectly through their supply chains whereby raw materials and components are transformed into a final product.

Every business depends on predictable supply costs. When it comes to this basic entrepreneurial principle, 2018 was not a good year. The Trump Administration imposed a series of tariffs with little warning. These measures were intended to address unfair trade practices and encourage foreign nations to renegotiate trade pacts to remove or equalize duty rates. Unfortunately, it hasn’t exactly worked out that way. Make no mistake, SEMA supports the goal of fair trade but questions the methods being employed to bring other countries to the bargaining table. The results to date have been modest when compared to the upheaval being caused in the marketplace.  

It’s unclear how or when trade tensions will be resolved. That’s a problem—businesses need certainty. As this article is being written, it is unknown whether U.S./Chinese negotiations will result in tariffs being removed or increased on March 1, or whether President Trump will impose tariffs on imported automobiles and auto parts. What can be said with certainty is this: few if any companies budgeted for tariffs in 2018.  

Tariffs have traditionally been considered a last resort in trade battles. There are many other mechanisms that can be employed first, such as filing product dumping and foreign subsidy actions or pursuing emergency import safeguard protections. Sanctions can be imposed to address counterfeiting and other intellectual property disputes. Our international trading partners can also collaborate to work collectively to contest unfair trade practices.  

The tariffs being imposed are impacting most SEMA members directly or indirectly through their supply chains whereby raw materials and components are transformed into a final product. Some members may welcome certain tariffs, such as those imposed on Chinese products that compete with products made in the United States. However, if they used domestic steel or aluminum to produce their goods, prices for those commodities skyrocketed when the metal tariffs were imposed.  

Tariffs are a sledgehammer approach with unintended consequences. Once imposed, they become difficult to withdraw as other countries pursue retaliatory measures. In fact, tariffs may ultimately make U.S. manufacturers less competitive in a global economy, which has been reflected by the growing trade imbalance in 2018 even as tariffs have been both implemented and increased.  

One of the desired results of the Trump Administration tariffs is to coax companies to produce their products in the United States in order to create high-paying jobs domestically. When looking at how to increase American manufacturing, it’s important to understand that a decline in the number of U.S. jobs in this sector over the past few decades is largely the result of increased productivity, automation and U.S. companies availing themselves of efficiencies created by the global supply chain. After World War II, countries were encouraged to abandon protectionist trade policies and work within a rules-based, open trading system. Although globalization has created problems that need to be addressed, it has generally produced widespread benefits ranging from more prosperity, lower prices, greater consumer choice and easing of international tensions. 

Companies are now scrambling to address the impact of unexpected and significant tariffs on their supply chains. Some businesses are revisiting whether it is possible to source supplies domestically or from countries not subject to tariffs. Uncertainty clouds those decisions since domestic sources may be unavailable or not price-competitive. Further, a company may relocate its supply chain from one country to another to avoid tariffs, only to find that the Trump Administration has imposed auto-parts tariffs on that country as well.  

Other tariff side effects include stockpiling and hoarding. Companies have been stockpiling inventory to avoid threatened higher tariffs. That has resulted in warehouse storage costs, a higher national trade deficit and, with respect to steel and aluminum, artificial price spikes.  

Companies ultimately face the decision of how to pay for the tariffs, which are essentially a tax collected by the U.S. government. Choices include absorbing the costs, raising product prices, renegotiating supplier contracts, resourcing supplies, reducing spending in other areas to offset costs and laying off workers.

SEMA has joined forces with many other industry organizations in urging the Trump Administration and U.S. Congress to abandon unilateral tariffs as a tool for resolving trade disputes. We will keep you informed on progress to address these issues. 

By SEMA Editors

	The Bonita High School Auto Shop Car Show is the school's biggest fundraiser, and the money is used to buy new tools and equipment for the Automotive Technology Program.

The students of the Bonita High School's Automotive Technology program invite members of the specialty automotive aftermarket to show off their custom and collectible vehicles during the Bonita High School Auto Shop Car Show.

Scheduled for March 23, at Bonita High School, in La Verne, California, from 9:00 a.m.–1:00 p.m., the car show will feature a trophy presentation, music, raffle prizes and more.

Want to see the cars? General admission to the Auto Shop Car Show is free.

The event is open to all vehicles—classics, hot rods, motorcycles, musclecars and late-model domestics, imports/sport compacts. To participate in the annual Bonita High School Auto Shop Car Show, use the registration form.

Proceeds benefit the Bonita High School Automotive Technology Program. Bonita High School is located at 3102 D St., La Verne, California.

Up to now, the ’20 GMC Sierra HD has only been seen in Crew Cab guise. But now, here’s the new Sierra HD in the Double Cab format—the first time this particular body style has been seen on GM’s new heavy-duty trucks.

Notice that the rear door is significantly shorter than that of the Sierra Crew Cab models a few weeks ago during the reveal event in San Diego. Despite the shorter rear door and associated reduced room in the rear seat, it still looks like there is ample space in the Double Cab, though not as much as in the Crew.

Photo credit: Brian Williams, SpiedBilde