The US Department of Commerce (US DOC) has announced that it has initiated an investigation under Section 232 of the Trade Expansion Act of 1962 on imports of automobiles, including SUVs, vans and light trucks, and automotive parts into the US. The investigation will determine whether imports of automobiles and automotive parts into the US threaten to impair the national security as defined in Section 232.
“There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry. The Department of Commerce will conduct a thorough, fair, and transparent investigation into whether such imports are weakening our internal economy and may impair the national security,” stated Wilbur Ross, US Department of Commerce Secretary.
According to the DOC, during the past 20 years, imports of passenger vehicles have grown from 32 percent of cars sold in the US to 48 percent.
With the Section 232 investigation on steel and aluminum imports, the Trump administration has started to impose additional customs duties of 25 percent for steel imports and 10 percent for aluminum imports into the US.