The Trump administration has launched a national security investigation into car and truck imports that could lead to new US tariffs on cars from Europe, Japan and South Korea
The probe would investigate whether vehicle and parts imports were threatening the industry’s health and ability to research and develop new, advanced technologies, the Commerce Department said.
“There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry,” Commerce Secretary Wilbur Ross said in a statement, reports Reuters.
Higher tariffs could be particularly painful for Asian automakers including Toyota Motor Corp, Nissan Motor Co, Honda Motor Co and Hyundai Motor Co, which count the United States as a key market.
The announcement sparked a broad sell-off in automakers’ shares across the Asia region.
The governments of Japan, China and South Korea said they would monitor the situation, while Beijing added that it would defend its interests.
“China opposes the abuse of national security clauses, which will seriously damage multilateral trade systems and disrupt normal international trade order,” a spokesman said.
The probe comes as Trump courts voters in the US industrial heartland ahead of mid-term elections later this year, and opens a new front in his “America First” trade agenda.
