Trade War Watch: U.S. Public to Have a Say on Auto Import Threat

Matt Posky
by Matt Posky

There was a mighty blowback against the Trump administration’s suggestion to elevate tariffs to as much as 25 percent on all foreign-built passenger vehicles.

Already reeling from fresh import fees on aluminum and steel, Europe expressed its collective distaste on new taxes while Japan vowed to plead a strong case for itself. Meanwhile, prominent politicians and two of the largest automotive trade groups in the country came forward to condemn the plan, stating it was “confident that vehicle imports do not pose a national security risk” to the United States.

While the administration has already launched its investigation to determine whether vehicle and auto part importers threaten the industry’s health and ability to develop advanced technologies, the government noted that a second opinion wouldn’t hurt. Announced on Tuesday in the Federal Register, the the Commerce Department will allot two days in July for public comments on the matter.

“There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry,” Commerce Secretary Wilbur Ross said in a statement last week. Still, he promises to conduct a “thorough, fair and transparent investigation.”

According to Reuters, the issue may not be as clear-cut as Ross suggests. The U.S. Chamber of Commerce says U.S. auto production has doubled over the past decade, adding that it’s worried the tariffs “would deal a staggering blow to the very industry it purports to protect and would threaten to ignite a global trade war.”

As for public opinion, the Commerce Department wants to hear from individuals on whether “innovation in new automotive technologies is necessary to meet projected national defense requirements,” as well as comments on the “displacement of any domestic automobiles and automotive parts causing substantial unemployment, decrease in the revenues of government, loss of investment or specialized skills and productive capacity.”

It hopes to gain clarity as to the role domestic production plays in national defense, and if foreign-owned factories influence that issue in a meaningful way. Written comments are due by June 22nd, with rebuttal comments scheduled for July 6th. Public hearings take place in Washington on July 19th and 20th.

[Image: Ken Lund/ Flickr ( CC BY-SA 2.0)]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Seanx37 Seanx37 on May 31, 2018

    Does this include Canada and Mexico? Because GM, Ford, and FCA are out of business in a month with tarriffs that large.

  • Voyager Voyager on May 31, 2018

    Security risk? What we have here is Detroit's failure to compete on markets outside the U.S., made worse by making CAFE and emission criteria less stringent under EPA idiot Pruitt. As a consequence, domestic market share has fallen too.

    • See 1 previous
    • Voyager Voyager on Jun 01, 2018

      @TW5 Yes, they do (the emission and efficiency criteria) - it's why American cars fall in higher tax brackets in the EU or are even unsalable altogether. Good example is the Mustang 5.0 V8. That one costs 120,000 euro in the country where I live, almost twice the price of a 4 cyl. 2.3 liter Mustang.

  • ToolGuy This might be a good option for my spouse when it becomes available -- thought about reserving one but the $500 deposit is a little too serious. Oh sorry, that was the Volvo EX30, not the Mustang. Is Volvo part of Ford? Is the Mustang an EV? I'm so confused.
  • Mikey My late wife loved Mustangs ..We alway rented one while travelling . GM blood vetoed me purchasing one . 3 years after retirement bought an 08 rag top, followed by a 15 EB Hard top, In 18 i bought a low low mileage 05 GT rag with a stick.. The car had not been properly stored. That led to rodent issues !! Electrical nightmare. Lots of bucks !! The stick wasn't kind to my aging knees.. The 05 went to a long term dedicated Mustang guy. He loves it .. Today my garage tenant is a sweet 19 Camaro RS rag 6yl Auto. I just might take it out of hibernation this weekend. The Mustang will always hold a place in my heart.. Kudos to Ford for keeping it alive . I refuse to refer to the fake one by that storied name .
  • Ajla On the Mach-E, I still don't like it but my understanding is that it helps allow Ford to continue offering a V8 in the Mustang and F-150. Considering Dodge and Ram jumped off a cliff into 6-cylinder land there's probably some credibility to that story.
  • Ajla If I was Ford I would just troll Stellantis at all times.
  • Ronin It's one thing to stay tried and true to loyal past customers; you'll ensure a stream of revenue from your installed base- maybe every several years or so.It's another to attract net-new customers, who are dazzled by so many other attractive offerings that have more cargo capacity than that high-floored 4-Runner bed, and are not so scrunched in scrunchy front seats.Like with the FJ Cruiser: don't bother to update it, thereby saving money while explaining customers like it that way, all the way into oblivion. Not recognizing some customers like to actually have right rear visibility in their SUVs.
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