WASHINGTON _ Some policymakers and powerful business groups on Thursday criticized President Donald Trump's threatened tariffs on imported autos and auto parts into the U.S. on national security grounds, suggesting Trump is abusing his authority.
U.S. Sen. Bob Corker, R-Tennessee, who serves as chairman of the Senate Foreign Relations Committee and represents a state which is home to plants run by General Motors, Nissan and Volkswagen AG, said Trump is following "a dangerous course."
"There is no reason to use this provision to consider imposing tariffs on the automobile industry, and this appears to be either an attempt to affect domestic politics ahead of the election or for some other transactional purpose regarding ongoing trade discussions," said Corker. He added that he thought the proposal "should be abandoned immediately."
Meanwhile both auto suppliers represented by the Motor & Equipment Manufacturers Association (MEMA) and the U.S. Chamber of Commerce, representing businesses across the U.S., also slammed the proposal, with Chamber president and CEO Thomas J. Donahue saying it could "deal a staggering blow to the very industry it purports to protect and would threaten to ignite a global trade war."
"This isn't about national security. The administration has already signaled its true objective is to leverage this tariff threat in trade negotiations with Mexico, Canada, Japan, the European Union, and South Korea," Donahue said. "The president's (authority) should not be abused in this way, and doing so only encourages other nations to do likewise."
On Wednesday evening, Trump _ amid criticism that his administration failed to extract concessions from China on trade and has so far failed to renegotiate the North American Free Trade Agreement, which he has repeatedly attacked as being bad for the U.S. _ asked Commerce Secretary Wilbur Ross to initiate an investigation into imported cars, trucks and auto parts. He did so saying, "Core industries such as automobiles and automotive parts are critical to our strength as a Nation."
Under Section 232 of the Trade Expansion Act of 1962, the Commerce Department can investigate whether imports threaten the national security and make recommendations which the president can then act on. On Wednesday, Ross said he was initiating just such an investigation into autos and auto parts.
Trump and the Department of Commerce earlier this year announced tariffs on imported steel and aluminum based on a Section 232 investigation finding that reductions in U.S. capacity and job losses threatened to impair national security, raising concerns among some at the time that he was misusing his authority.
Generally, reaction to news of Trump's threat went without comment from many on Capitol Hill, including several Michigan lawmakers, though some, including U.S. Sen. Debbie Stabenow, D-Mich., and U.S. Rep. Debbie Dingell, D-Dearborn, seemed tentatively supportive if it somehow leads to more U.S. auto jobs and more overseas markets being opened to U.S. automakers.
"My bottom line is that we are making more cars in Michigan and are exporting our products, not our jobs. I will be reviewing the details of what has been proposed and expect that this investigation will be a long process," said Stabenow.
But at the Motor & Equipment Manufacturers Association (MEMA), which represents auto parts makers and suppliers, officials called for Trump to reconsider, saying tariffs on parts they use to build other components "would adversely impact the success and growth of American manufacturing businesses. In addition, consumers need competitively priced aftermarket parts to repair and maintain their vehicles."
Officials around the globe also criticized the proposal, with NHK-World Japan quoting that nation's trade minister, Hiroshige Seko as saying, "If the U.S. imposes extreme trade restrictions (on autos and parts), the world market would be thrown into confusion."
Contact Todd Spangler at 703-854-8947 or at tspangler@freepress.com. Follow him on Twitter at @tsspangler.
