San Francisco Chronicle

Trump initiates probe of imports of cars, trucks

- By Ana Swanson Ana Swanson is a New York Times writer.

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.

 ?? Susana Gonzalez / Bloomberg 2016 ?? Kia Motors Corp. workers assemble Forte vehicles when the plant opened in Pesqueria, Mexico in 2016. Last year, the company said the plant built about 110,000 vehicles to export to the U.S.
Susana Gonzalez / Bloomberg 2016 Kia Motors Corp. workers assemble Forte vehicles when the plant opened in Pesqueria, Mexico in 2016. Last year, the company said the plant built about 110,000 vehicles to export to the U.S.

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