President Says Auto Imports Harm National Security; No Action While Negotiations with EU, Japan Continue
President Donald Trump issued a proclamation saying that he may take action under Section 232 to restrict auto and auto part imports if negotiations with the European Union and Japan don't make way for higher sales for American carmakers.
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The president said that innovations in electrification, making vehicles lighter, engines and powertrains, autonomous driving and "advanced connectivity" in the auto sector "are essential to maintaining our military superiority."
The proclamation did not say whether the actions would target all auto related imports outside the NAFTA region and Korea, or whether quotas or tariffs would be needed on certain products. It did not say what level of tariffs is necessary. But the EU, Japan and "any other country the U.S. Trade Representative deems appropriate" have 180 days to find a solution to mitigate the threat to national security, the proclamation said. It said that the Korea-U.S. renegotiation and the renegotiated NAFTA "could help to address" the threat.