Trump Seeking Way to Levy Tariff on Auto Imports

24/05/2018

U.S. President Donald Trump has asked Commerce Secretary Wilbur Ross to consider opening an investigation into the effect of vehicle imports on national security.

“I instructed Secretary Ross to consider initiating a Section 232 investigation into imports of automobiles, including trucks, and automotive parts to determine their effects on America’s national security,” Trump said in a statement after meeting with Ross.

Trump has already used the provision to levy tariffs of 25 percent on steel and 10 percent on aluminum.

Trump is seeking to levy a tariff of as much as 25 percent on automobile imports. The president, who has pledged to revive American manufacturing, has launched a series of trade actions, demanding that China import more American goods, starting talks to renegotiate the North American Free Trade Agreement, and imposing the tariffs on steel and aluminum imports.

Trump hinted at the action earlier Wednesday, tweeting: “There will be big news coming soon for our great American Autoworkers. After many decades of losing your jobs to other countries, you have waited long enough!”

The Wall Street Journal, citing sources in the auto industry, said the plan most likely would face significant opposition from trading partners and auto dealers that sell imports.

It also is unlikely to pass muster with the World Trade Organization.

The top five auto importers to the U.S. are key American allies: Mexico, Canada, the European Union, Japan and South Korea.

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