Trump initiates probe of imports of cars, trucks
President Trump has initiated a sweeping trade investigation into whether autos imported into the United States pose a threat to national security, a move that could ultimately result in tariffs on foreign-made cars and further strain relations with global allies.
In a statement released Wednesday evening, the Commerce Department said it had begun an investigation “following a conversation” with Trump. The announcement followed a statement from Trump, in which he said he had instructed the commerce secretary, Wilbur Ross, to consider initiating an investigation into imports of cars, trucks and auto parts “to determine their effects on America’s national security.”
“Core industries such as automobiles and automotive parts are critical to our strength as a nation,” Trump said.
In a separate announcement, the Commerce Department said that imports of passenger vehicles had grown from under a third of cars sold in the United States 20 years ago to nearly half today, while employment in the sector had declined. Automobile manufacturing has long been a source of technological innovation in the United States, and the investigation would consider whether the decline of the auto industry threatens to weaken the American economy by reducing research and development in cutting-edge technologies, the statement said.
“There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry,” Ross said.
The investigation, which will take months to conduct, will be carried out under the same legal statute that the administration used to impose tariffs on steel and aluminum imports. The statute gives the president broad authority to restrict imports that threaten national security.
In remarks on Wednesday afternoon, Trump appeared to link the new trade investigation and continuing talks over the North American Free Trade Agreement. Those negotiations have largely stalled over auto rules, including how much of a car’s content must be manufactured in North America — and in the United States — to qualify for NAFTA’s zero tariffs.
The Trump administration has tried to use the steel and aluminum tariffs as a bargaining chip to persuade other countries to voluntarily restrain their metal shipments to the United States or make other trade concessions. The administration may be looking to use the auto tariffs similarly, as leverage to force concessions from trading partners like Canada and Mexico.