“Our presence there, along with other representatives of the American ATM industry, showed a united front in opposition to the tariffs,” said Renard. “I would say that based on the body language of the panel and the questions they asked following testimony, it was apparent that we struck a positive chord with them on the need to exempt ATMs from the proposed tariff increases. The adverse impact of this tax, along with the likely negative impacts on consumers appear to hit home with the panel.”
At issue are not only cuts to already slim margins of ATM deployers, but also a likely negative impact on consumers. Backing up Renard’s statements was NAC’s 2018 ATM locational study. “The findings of the study became central to the presentations of industry representatives,” he said. “The study clearly shows the dramatic negative consequences that would flow from the proposed tariffs if allowed to become effective, with the majority of those ill-effects hitting un-banked and under-banked communities.”
In his testimony, Leehy pointed out the potential impact on an industry largely comprised of small businesses that bring value to their customers and the communities they serve. A key point to Leehy’s testimony was the unique quality surrounding the manufacture of ATMs and their deployment. Unlike other imported products, ATMs have a post-deployment multiplier effect on jobs. That is to say, a deployed ATM generates many more jobs than required in its original production. These jobs, Leehy explained, include servicing, loading, and upgrading.
“Tax on ATMs is, in fact, a tax on retail commerce,” Leehy’s comments read. “It is hard to imagine that the imperatives of US. trade diplomacy, which of course we and the other witnesses appearing here do recognize, require you to take such an intrusive and potentially damaging step.”