Commerce Dept. Launches Section 232 Investigation on Automobile Imports

An investigation of whether imports of autos in the U.S. present a national security threat has been initiated by the U.S. Commerce Department, setting up the potential for duties of 25% to be imposed on such imports."There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry," Commerce Secretary Wilbur Ross said in a statement. "The Department of Commerce will conduct a thorough, fair, and transparent investigation into whether such imports are weakening our internal economy and may impair the national security."Imports of passenger vehicles have grown from 32% of cars sold in the United States to 48% over the past 20 years, Commerce said, while from 1990 to 2017, employment in motor vehicle production declined by 22%, even though Americans are continuing to purchase automobiles at record levels. The investigation under Section 232, the same provision used relative to steel and aluminum imports, will focus on whether imports autos and auto parts potentially reduce research, development and jobs for skilled workers in connected vehicle systems, autonomous vehicles, fuel cells, electric motors and storage, advanced manufacturing processes, and other cutting-edge technologies, Commerce said.Commerce Secretary Ross sent a letter to Secretary of Defense James Mattis informing him of the investigation.Some observers say Trump’s call is merely a tactic to goad Canada and Mexico into accepting an overhaul of the North American Free Trade Agreement (NAFTA 2.0).And Senate Majority Leader Mitch McConnell, R-Ky., expressed concern that the potential duties could have on U.S. agriculture.