Trump is reportedly considering a plan to slap tariffs on imported cars

Lloyd Doyle
May 24, 2018

President Donald Trump has ordered a national security probe into vehicle imports, which could bring new tariffs.

The US Commerce Department said Wednesday it launched an inquiry that could allow the Trump administration to impose tariffs on auto imports over national security concerns.

Both countries are part of the North American Free Trade Agreement (Nafta), which the Trump administrations wants to renegotiate in a bid to boost the U.S. manufacturing sector.

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

Almost half of the vehicles sold in the USA are imported, with many coming from assembly plants in Mexico and Canada.

The Trump administration is considering new tariffs on imported cars in a move that trade analysts said was created to put pressure on Mexico during the final stages of negotiations for a new North American trade deal. Treasury Secretary Steven Mnuchin has said that efforts to renegotiate the trade agreement could spill into next year. During a meeting with auto executives earlier this month, Trump said he would push for an increase in the production of vehicles built at US plants.

Turkey has made a decision to impose taxes on a number of US goods in response to steel and aluminum import tariffs imposed by US President Donald Trump.


Trump brought a little-used weapon to his fight to protect auto workers: Section 232 of the Trade Expansion Act of 1962.

The tariffs on steel and aluminum imports followed a year-long investigation, so any action on auto imports could be months away.

By threatening a tariff on all imported cars, Mexico could be pressured into the tightening of the rules. He noted that both Mexico and Canada have been "very hard to deal with" during the negotiations.

Trump has obsessed over German cars above all others, according to a senior White House official familiar with the talks.

The president was asked about the status of the NAFTA talks.

The president tweeted earlier on Wednesday about "big news" for the country's autoworkers.

The Turkish taxes target U.S. coal, paper, walnuts, almonds, tobacco, paddy, automobiles, cosmetics, machinery and equipment, and petrochemical products, says Turkish Ministry of Economy.

Other reports by Iphone Fresh

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