President Trump orders probe of tariffs for cars, trucks

Trump Initiates Trade Inquiry That Could Lead to Tariffs on Foreign Cars

Trump has instructed US Commerce Secretary Wilbur Ross to consider initiating an investigation under Section 232 of the 1962 Trade Expansion Act to find if tariffs or other restrictions were needed on imported cars, after he met him at the White House to discuss the current state of US automobile industry.

U.S. President Donald Trump is considering launching a trade investigation of auto imports on national security grounds, a senior Trump administration official said on Wednesday.

The White House says Trump has asked Commerce Secretary Wilbur Ross to consider whether imports of cars and trucks and automotive parts threaten USA national security.

The administration is thinking of starting an investigation on imported cars under a legal provision known as Section 232 and applying tariffs after the investigation.

"Core industries such as automobiles and automotive parts are critical to our strength as a nation", Trump's statement said.

Turkey has chose to impose taxes on a number of US goods in response to steel and aluminum import tariffs imposed by US President Donald Trump. Trump has been a frequent critic of vehicle imports, blasting Ford and other automakers for building vehicles in Mexico and shipping them into the U.S.

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The latest announcement comes as negotiations with Canada and Mexico over revamping the continent-wide North American Free Trade Agreement (NAFTA) have stalled over auto demands.

Trump has long made the imbalance in auto trade a key concern, repeatedly threatening to impose tariffs on imported vehicles.

A new tariff on cars, trucks and SUVs could face opposition from some industry groups, with foreign automakers and their dealers likely to be concerned about a price disadvantage against domestic rivals.

By threatening a tariff on all imported cars, Mexico could be pressured into the tightening of the rules.

The president previously threatened to levy new tariffs on European cars if the European Union did not lower barriers on American products.

Trump hinted at the auto action early Wednesday when he tweeted, "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!"

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