Published: Thu, May 24, 2018
Markets | By Erika Turner

Trump plans may impose new tariffs on imported vehicles

Trump plans may impose new tariffs on imported vehicles

The Trump administration is looking into using national-security laws to impose new tariffs on vehicle imports, according to administration officials and industry executives briefed on the plan.

President Donald Trump has a new trade target: cars.

The administration previously launched a 10-month investigation under Section 232 of the Trade Expansion Act and determined that unfair steel and aluminum trade practices threatened national security.

A person familiar with the matter told Breitbart News that the Commerce Department was expected to provide the White House with details of the plans late Wednesday. President Donald Trump predicted earlier that US automakers and auto workers would be "very happy" with the outcome of the NAFTA talks. "But I will tell you, what they've asked for is not fair". "Wow", said Flavio Volpe, president of the Automotive Parts Manufacturers of Canada, who added that he had not heard of the idea.

The proposal, reported earlier Wednesday in the Wall Street Journal, would further inflame relations with America's trading partners and could roil financial markets already jittery about trade tensions.

The White House could opt to negotiate with individual countries about whether auto tariffs take effect. "But I will tell you, in the end, we will win - and we'll win big", he told reporters on the White House lawn as he prepared to depart for an event in NY.

It would also affect Honda Motor Co.

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Initially, many saw this as referring to China's announcement Tuesday that it would make big reductions in its tariffs on imported cars.

During the campaign, Trump also promised to revive a shrinking manufacturing base in the U.S. Trump's tweets today gave optimism that a deal was near on NAFTA.

Some auto industry representatives said they anxious that the plan could raise prices for cars and trucks in the United States, and end up leading to a less competitive American industry and fewer choices for American consumers.

German automakers Volkswagen AG, Daimler AG and BMW AG all have large USA assembly plants.

The U.S. imported $192 billion in new passenger vehicles in 2017, according to Chad Bown, a senior fellow at the Peterson Institute for International Economics.

The U.S.is in talks with China on a deal to avoid tit-for-tat tariffs between the world's two biggest economies.

Peter Sklar, auto analyst with BMO Nesbitt Burns, said about 3.9 million vehicles were imported into the United States previous year from Europe and Asia.

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