US to consider new national security tariffs on auto parts

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By David Shepardson

WASHINGTON (Reuters) -The U.S. Commerce Department said Tuesday it will consider industry requests to impose tariffs on additional imported auto parts in the coming weeks on national security grounds.

In May, Trump imposed 25% auto tariffs on more than $460 billion worth of imports of vehicles and auto parts annually, but has since struck deals to reduce those tariffs on some countries. The department said Monday domestic producers of automobiles or automobile parts, or any industry association can ask for tariffs on additional parts to be imposed that have national security impacts.

“The automotive industry is in a state of rapid development for various technologies, including in the areas of alternative propulsion systems, autonomous driving capabilities, and other advanced technologies,” the department said, adding the industry needs “the opportunity to identify new and emerging automotive products with importance for defense applications.”

Last month, the Commerce Department said it was hiking steel and aluminum tariffs on more than 400 products including numerous auto parts totaling $240 billion in annual imports. The parts include automotive exhaust systems and electrical steel needed for electric vehicles as well as components for buses.

A number of groups on Tuesday including the Chamber of Commerce as well as trade associations representing U.S. and foreign automakers and auto parts firms urged the Commerce Department “to eliminate further unpredictable expansions.”

The groups in a letter said “the recent expansion was implemented without adequate notice and creates significant unintended costs, complexity, and uncertainty for U.S. businesses.”

(Reporting by David Shepardson, Editing by Franklin Paul)