Industry Anxious About Section 232 Tariffs on Autos as Commerce Report Under Wraps
The Commerce Department has sent its recommendations to the president on how much imported auto parts and autos should be taxed, and auto industry players and pro-free-trade groups are angry that no one outside the administration knows what they are. On Feb. 18, American International Automobile Dealers Association President and CEO Cody Lusk said, "Late last night, after nine months of waiting, the Department of Commerce finally submitted to the White House its findings on whether imported autos and auto parts constitute a national security threat to the United States. Unfortunately, the report has not been made public, highlighting, once again, the bogus nature of this investigation ... ."
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"I have not read it, I've asked for it," Senate Finance Committee Chairman Chuck Grassley, R-Iowa, told reporters on a conference call Feb. 19. "I hope that they said that there shouldn't be tariffs on cars. I think it would be ludicrous to think that under [Section] 232, which is based on national security, that there's a justification for putting tariffs on cars. It'd be subterfuge to use 232 to put tariffs on cars."
Association of Global Automakers CEO John Bozzella said, “If it is going to be the policy of the U.S. government that the price of autos and auto parts should increase by as much as 25 percent because of new tariffs, the American public deserves to know that as soon as possible. Full and rapid disclosure will allow American consumers, auto industry stakeholders, and the Congress to debate the merits of the policy and take actions as needed. On the other hand, if the persistent reports that the Commerce Department’s investigation into auto trade will recommend tariffs of 25 percent are in fact wrong, then the American public should also know that as soon as possible." He said the specter of the tax is preventing investment decisions.
Rep. Jackie Walorski, R-Ind., issued a statement Feb. 18 that said: "Broad-based auto tariffs would lead to retaliatory measures by our trading partners, raise costs for hardworking families, and hurt local manufacturers in my district and across Indiana that make cars, RVs, auto parts, and more."
Toyota tweeted, "The 137,000 people who work for Toyota across America deserve to know whether they are considered a national security threat. And the American consumer needs to know whether the cost of every vehicle sold in the U.S. may increase.”
"Making cars pricier when auto loan delinquencies are already surging seems particularly tone deaf to working Americans," Freedom Partners Executive Vice President Nathan Nascimento said, and he called on Congress to support Sen. Pat Toomey's bill that would prevent auto tariffs from being levied unless Congress agrees (see 1901310029).