Trump launches probe into auto imports, possible tariffs

The Trump administration on Wednesday launched an investigation into whether tariffs are needed on the imports of automobiles into the United States, moving swiftly as talks over the North American Free Trade Agreement have stalled.

President Donald Trump predicted earlier that U. S. automakers and auto workers would be “very happy” with the outcome of the NAFTA talks.

The White House said in a statement that the president had asked Commerce Secretary Wilbur Ross to consider whether the imports of automobiles, including trucks, and automotive parts threaten U.S. national security. The president said in the statement that “core industries such as automobiles and automotive parts are critical to our strength as a Nation.”

The U.S. remains far apart on the talks over rewriting the trade pact with Canada and Mexico, with the discussions at an impasse over rules for car production. The initiation of the trade investigation could be seen as an attempt to gain leverage in the talks with the two U.S. neighbours. Treasury Secretary Steven Mnuchin has said that efforts to renegotiate the trade agreement could spill into next year.

Nearly half of the vehicles sold in the U.S. are imported, with many coming from assembly plants in Mexico and Canada.

Trump has also criticized European Union auto imports and tariffs and earlier this year threatened a “tax” on European imports.