Skip to main content
Sister Publication Links
  • Automotive News
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • HUMANITARIAN
  • News
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • BEST PLACES TO WORK
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
May 24, 2018 02:00 AM

Trump orders tariff investigation of imported autos, auto parts

Miles Moore
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    WASHINGTON — Following closely on the issuance of tariffs on imported steel and aluminum, President Trump has ordered the U.S. Department of Commerce to investigate whether imported vehicles and vehicle parts constitute a threat to national security.

    As with the steel and aluminum investigations, the probe of autos and auto parts will be conducted under the authority of Section 232 of the Trade Expansion Act, which was designed to determine whether tariffs should be levied against imported goods that potentially harm U.S. industry.

    The investigation will encompass passenger vehicles including SUVs, vans and light trucks, the Commerce Department said.

    "There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry," Commerce Secretary Wilbur Ross said in announcing the investigation on May 23.

    Over the past 20 years, passenger vehicle imports have gone from 32 to 48 percent of the vehicles sold in the U.S., according to a Commerce news release.

    "From 1990 to 2017, employment in motor vehicle production declined by 22 percent, even though Americans are continuing to purchase automobiles at record levels," the agency said.

    "Now, American-owned vehicle manufacturers in the United States account for only 20 percent of global research and development in the automobile sector, and American auto part manufacturers account for only 7 percent in that industry," it said.

    In a May 24 statement, the Motor & Equipment Manufacturers Association (MEMA) said it opposed the Section 232 investigation.

    "MEMA concurs that national security depends on the economic security of the country," the association said. "Motor vehicle parts manufacturers are a critical element of this agenda."

    Nevertheless, imposing Section 232 tariffs on imported auto parts would put both American jobs and national security at risk, according to MEMA.

    Employment in the auto parts industry now is at 871,000, up 19 percent from five years ago, according to MEMA.

    "This growth in jobs has been possible because motor vehicle parts suppliers operate in an integrated, complex global supply chain," it said. "Access to worldwide markets is critical for the motor vehicle parts industry to remain competitive."

    President Trump issued tariffs of 25 percent against imported steel and 10 percent against imported aluminum March 8, though he later allowed various exemptions.

    Organizations such as the U.S. Tire Manufacturers Association and the MEMA protested the decision on the grounds that so much of U.S. industry, including tire manufacturing, is dependent on imported steel.

    Labor unions, however, generally favored the tariffs as supporting U.S. manufacturing jobs.

    Officials of the United Steelworkers union could not be reached for comment.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Turbo Wholesale acquires Tire Wholesalers Inc.
    2
    Goodyear to halve capacity at Fulda plant, cut jobs
    3
    Triangle strengthens U.S. distribution capacity
    4
    VIP Tires acquires Marshfield Tire in Massachusetts
    5
    TBC, Mavis complete deal for NTB, Tire Kingdom stores
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HUMANITARIAN
    • News
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • BEST PLACES TO WORK
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION