Global Economy

Donald Trump receives car import threat report

WASHINGTON: President Donald Trump has received the findings of a probe into whether imported vehicles pose a national security threat, which could lead the US to impose tariffs. Commerce Secretary Wilbur Ross has submitted his recommendations to Trump, the department said in a statement on Sunday in Washington, without offering any insights into the findings.

Trump has 90 days to decide whether to act on the findings. Commerce started the investigation in May under Section 232 of the Trade Expansion Act, the same provision the administration used last year to slap tariffs on steel and aluminum. The car probe covers imports of vehicles including SUVs, vans and light trucks, as well as auto parts. American and foreign-based auto manufacturers have been lobbying against it.

Ross had until Sunday to deliver his findings to the president, who has the final say on whether to impose tariffs. Trump has threatened levies of as much as 25% on foreign made vehicles. Companies have warned Trump that tariffs on car imports would hurt the U.S. economy and disrupt the global auto industry.

An auto trade war would deal a blow to car makers from GM to Toyota, which have built their supply chains to take advantage of countries with low duties.


Leave a Reply