Trump says US may launch investigation of auto imports on security grounds

A Section 232 investigation was invoked to impose tariffs on aluminium and steel

Trump, Donald trump, united states
US President Donald Trump gestures while addressing a joint news conference with Nigeria's President Muhammadu Buhari in the Rose Garden of the White House in Washington, US | Photo: Reuters
David Shepardson and Jeff Mason | Reuters Washington
Last Updated : May 24 2018 | 9:26 AM IST

US President Donald Trump said on Wednesday he asked his commerce secretary to considering opening an investigation into the effect of vehicle imports on national security, a move that could lead to the imposition of tariffs.

"I instructed Secretary (Wilbur) 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.

"Core industries such as automobiles and automotive parts are critical to our strength as a Nation," he said.

A Section 232 investigation was invoked to impose tariffs on aluminium and steel.

An administration official said before the announcement that the expected move was aimed partly at pressuring Canada and Mexico to make concessions in talks to update the North American Free Trade Agreement that have languished in part over auto provisions, as well as pressuring Japan and the European Union, which also export large numbers of vehicles to the United States.

"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!" Trump said in a tweet earlier on Wednesday.

Trump, who has pledged to revive American manufacturing, has launched a series of trade actions, demanding China import more American goods, starting talks to renegotiate NAFTA and imposing tariffs on steel and aluminium imports.

Reuters confirmed a report by the Wall Street Journal that the administration was considering launching a "Section 232" investigation into auto imports that could see tariffs of up to 25 percent imposed on imports.

 

 

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First Published: May 24 2018 | 9:26 AM IST

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