Will the US Government Train its Tariff Guns on Imported Cars Next?
On Tuesday, US Commerce Secretary hinted at the possibility of tariffs on imported cars and auto parts. Ross made these comments while speaking to Reuters in New York, adding, “We’ve been having negotiations with the individual companies. We’ve had some very good benefits from that. It may or may not turn out that there is any need for the tariff”.
The last extension on the deadline for tariffs expired in mid-November, giving markets some relief that the US government may have decided not to go ahead with higher tariffs on cars and auto parts imported from the EU, Japan and South Korea. Previously, Trump had threatened to hike tariffs to as much as 25% stating that these imports were a threat to US’s national security under Section 232 of the Commerce Department.
Analysts anticipate that the US government could explore other means beyond tariff hikes on imported cars as it tries to improve its trade relations with the EU and Japan. Although the November deadline has elapsed, Ross remarked that the US could impose tariffs on European cars as part of the WTO’s ruling on the Airbus aircraft subsidies issue.
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