Wednesday 23 May 2018

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

Trump, Donald trump, united states

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.

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