Trump considering 25 pct tariffs on auto imports

Trump considering 25 pct tariffs on auto imports

Trump has previously described China's unusually high import tariff as "stupid trade" and threatened to raise tariffs on European Union-imported cars.

American Commerce Secretary Wilbur Ross on Wednesday raised the threat of vehicle tariffs when he said he had initiated an investigation into whether auto imports "are weakening our internal economy and may impair the national security".

"But we know that this is very much linked to ongoing negotiations around moving forward on NAFTA".

The Commerce Department investigation could take several months to complete and would likely end with Commerce making recommendations on whether and how to restrict vehicle imports, which Trump could then choose whether or not to accept. The U.S.is also one of the biggest markets for Toyota and Hyundai, though both have American factories.

Germany's association of industry groups said auto tariffs would be a "provocation" and "another nasty blow to our economic relations" with the United States.

"I will tell you in the end, we win".

He says the harm in Canada caused by tariffs would vary depending on how severe and wide-ranging they are.

Negotiations over auto imports and manufacturing remain the biggest sticking point in the NAFTA talks. "They have been taking advantage of the United States for a long time", Trump told reporters outside the White House. General Motors was the number one selling brand in the U.S.in 2017 while Ford was number three. This could also lead to less choice.

The threat is typical of Trump's "brinkmanship" negotiating style, she added, and not necessarily indicative of his intentions.

Asked if the measures would hit Mexico and Canada, a Mexican source close to the NAFTA talks said: "That probably is going to be the next battle". The tariffs on steel and aluminum proved to be quite controversial, forcing delays in the Section 232 report to the president and weakening full implementation of the tariffs.

Trump directs government to investigate whether tariffs are needed on imports of autos, trucks
'Big news for our autoworkers': Trump looks at tariffs on car imports

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

The president had teased the announcement throughout the day, saying he had "big news" for the US auto industry.

In Beijing, Commerce Ministry spokesman Gao Feng told reporters that abusing national security provisions would "undermine the multilateral trade system and disrupt the order of global trade".

"I am - even more than I was with steel and aluminum - trying to figure out where a possible national security connection is", Trudeau said at the luxurious riverside hotel that will be the site of a Group of Seven summit in June.

Section 232 is the same method the U.S. used to impose tariffs on steel and aluminum imports. Having a robust automotive sector is considered vital to the country's national security.

After many decades of losing your jobs to other countries, you have waited long enough", Trump tweeted in the hours before the announcement, which came amid reports that North American Free Trade Agreement talks between Mexico, Canada, and the USA have stalled over auto manufacturing rules.

But he questioned whether it would work.

"I'm absolutely convinced that in the face of the insults, in the face of these shows of bravado, the worst thing that Mexico could do would be to become intimidated and sign an agreement under unfavorable conditions", he said. The steel-and-aluminum investigations took the full nine months.

Commerce said the probe would determine whether lost domestic production had weakened the U.S.

Indiana School Shooting Leaves Teacher and Student Wounded
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