Detroit Free Press: House Democrat Group: Auto Tariffs Not Justified on Imports, Urge Trump to Abandon Threat
A group of Democratic U.S. House representatives wants President Donald Trump to release the results of an investigation into imported automobiles and abandon the threat of auto tariffs, which experts warn could add thousands of dollars to new car prices.
Nine members of the New Democrat Coalition, in a letter to the president Thursday, said he is abusing his authority by continuing to keep the report secret. The investigation report could be used as the basis for imposing Section 232 tariffs, which fall under the Trade Expansion Act of 1962.
White House economic adviser Larry Kudlow, in an interview with Bloomberg TV last week, said a decision on tariffs related to imports from the European Union is on hold pending a possible trade deal, according to Reuters.
Highlighting data from the Center for Automotive Research, the Congressional Research Service estimated "that a 25% tariff applied to all vehicles sold domestically could raise the price of an average car sold in the United States by $4,400." While the tariffs could potentially boost domestic production, the global nature of the supply chain complicates that possibility, the research service noted.
The Democrats — none from Michigan — said the threat of tariffs is not justified. The letter said American autoworkers, parts suppliers, dealers, consumers and others "have lived under the threat of tariffs since you initiated the Section 232 investigation into auto imports on May 23, 2018."
"As members of the New Democrat Coalition Trade Task Force, we once again want to reiterate that we do not believe that imported automobiles and auto parts and the hard-working Americans in the auto sector are a national security threat," the letter said. "In fact, your abuse of the Section 232 tariff process jeopardizes our national security by alienating our allies and threatening the economic security of American workers."
The research service noted that the investigation report was submitted to the president by the Commerce Department almost one a year ago, but it has not been made public.
"According to the president, the report concluded that U.S. auto imports pose a national security threat because they affect 'American-owned' producers’ global competitiveness and research and development on which U.S. military superiority depends. The president’s emphasis on U.S. ownership implies the administration sees foreign-owned automakers operating in the United States as having fewer benefits to U.S. national security," the research service said in its own report last month.
By: Eric D. Lawrence
Source: Detroit Free Press
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