US receives report for triggering auto tariffs from Commerce Department

On Sunday, February 17, the United States President reportedly received a report from the Commerce Department that said the US could trigger auto tariffs on imported cars and car parts and intensify tensions with Europe.

Much detail about the report is not known yet, as Reuters confirmed that a department spokeswoman refused to disclose any details of the Section 232 national security report submitted to Trump by Commerce Secretary Wilbur Ross. The disclosure of the submission came less than two hours before the end of a 270-day deadline.

Trump has now 90 days to decide whether to act upon the recommendations. Auto industry officials expect at least some tariffs to be included on fully assembled vehicles or on technologies and components related to electric, automated, connected and shared vehicles.

The industry fears that on the application of auto tariffs on millions of imported cars will hike the vehicles costs, and potentially lead to hundreds and thousands of job losses throughout the US economy.

The Motor and Equipment Manufacturers Association, on the other hand, warns slower investment in the United States due to the tariffs, if imposed.

German Chancellor Angela Merkel has also labelled as "frightening" the prospect that European car imports could be declared a national security threat to the United States.

Trump has threatened 25 percent duties on European autos, especially targeting Germany, which he says has harmed the American car industry.

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