Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Republicans in U.S. Congress slam Trump probe of auto imports

Published 2018-05-24, 01:37 p/m
© Reuters.  Republicans in U.S. Congress slam Trump probe of auto imports
VOWG_p
-
005380
-
7201
-
7267
-
7203
-

By Richard Cowan and Susan Cornwell

WASHINGTON, May 24 (Reuters) - Some of President Donald Trump's fellow Republicans in the U.S. Congress said on Thursday that his administration's national security investigation of car and truck imports amid a trade spat with China is being pursued under false pretenses and could hurt U.S. consumers.

Trump said on Wednesday that ongoing U.S.-China trade talks would need "a different structure" because they appeared "too hard to get done."

Shortly after, the Commerce Department launched a probe of auto imports under Section 232 of the Trade Expansion Act of 1962 that could lead to new U.S. tariffs similar to those imposed on imported steel and aluminum in March. tariffs could be particularly painful for Asian automakers, including Toyota Motor Corp 7203.T , Nissan Motor Co 7201.T , Honda Motor Co 7267.T and Hyundai Motor Co 005380.KS , which count the United States as a key market.

Congressional Republicans said it was unclear what Trump was aiming to accomplish with the probe, warning it could result in U.S. job losses, and with some suggesting it was a political tactic ahead of midterm elections in November.

Senate Foreign Relations Committee Chairman Bob Corker said there was "no reason" to conduct a national security investigation of auto imports.

"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. This is a dangerous course and should be abandoned immediately," Corker said in a statement.

Corker is a Republican from Tennessee, where Volkswagen (DE:VOWG_p), Nissan and other auto-related manufacturers have assembly and production plants.

Pennsylvania's Republican Senator Pat Toomey said on Twitter that Trump was making the move "under the false pretense of national security" and that it "invites retaliation."

In the House of Representatives, Kentucky Republican Andy Barr, who has a Toyota factory in his district, said he wants to know what Trump seeks to accomplish.

"Toyota Kentucky is as much of an American manufacturing company as Ford in Louisville," Barr told Reuters. "It's an American subsidiary of a Japanese parent, but it is an American company. There needs to be a level playing field."

Republican Representative Roger Williams, who owns a Chrysler-Dodge-Jeep auto dealership in Weatherford, Texas, said any tariff on auto imports would negate the positive impact of the new Republican tax law on consumers, and increase costs for U.S. car manufacturers that buy foreign parts.

"They're world vehicles. Parts are made everywhere and they're put together somewhere," Williams told Reuters.

Senator Orrin Hatch, the finance committee chairman who shepherded the tax law through that chamber, called the Trump investigation of auto imports "deeply misguided."

"For most Americans, cars are the second largest purchase they make, after their homes. Taxing cars, trucks and auto parts coming into the country would directly hit American families," Republican Hatch said in a statement, urging Trump to "remain focused on addressing China's trade practices."

It was not yet clear whether lawmakers might try to act if the administration eventually imposes new tariffs on foreign auto imports.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.