US trade agency submits report to Trump on imposing tariffs on auto imports

The US Commerce Department has sent a report to President Donald Trump that could impose steep tariffs on imported automobiles and car parts, provoking a sharp backlash from the auto industry and the European Union.

US Commerce Secretary Wilbur Ross submitted his recommendations to Trump, the department said in a statement on Sunday, without disclosing any details.

The report’s purpose was to determine whether imported vehicles pose a national security threat to the US and it had to be completed by Sunday.

Trump has 90 days to decide whether to take action on the report. Under “Section 232” of the Trade Expansion Act, the US president can impose tariffs based on a recommendation from the US Commerce Secretary.

Section 232 is the same provision the Trump administration used last year to slap tariffs on steel and aluminum.

The auto industry has warned that tariffs of up to 25 percent on millions of imported cars and parts would add thousands of dollars to vehicle costs and potentially lead to hundreds of thousands of job losses throughout the US economy.

The Motor and Equipment Manufacturers Association, which represents auto parts suppliers, warned that tariffs will harm investment in the United States at a time when the auto industry is already suffering from declining sales, Trump’s tariffs on steel and aluminum, and tariffs on auto parts from China.

The US and EU have been at loggerheads on setting an agenda for trade talks, leading to speculation that a frustrated US president might move ahead on previous threats to impose tariffs of up to 25 percent on European auto imports.

Trump agreed not to impose auto tariffs on Europe while the two sides work on a trade deal.

Officials in the Trump administration have said tariff threats on autos are a way to win concessions from the EU and Japan.

PressTV-EU vows to respond to any US auto tariff move

A senior official with the European Union Commission says the bloc will respond to any US move to increase tariffs on cars made in the bloc.

Trump said on Friday that tariffs protect US manufacturing and also help win trade agreements.

The European Union said on Monday it would react in a swift and adequate manner if Trump follows through on his threat to impose duties on EU cars and auto parts. The 28-nation bloc has prepared retaliatory tariffs totaling 20 billion euros ($22.7 billion) of US goods.

"The European Commission is aware of the conclusion of an investigation by the US Department of Commerce on whether car imports represent a threat to US national security. Where this report translates into actions detrimental to European exports, the European Commission would react in a swift and adequate manner," European Commission spokesman Margaritis Schinas told a news conference.

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk