Following President Trump’s request for an investigation of automobile imports, with a stated intention of increasing duties by as much as 25%, the U.S. Department of Commerce initiated an investigation, pursuant to Section 232 of the Trade Expansion Act of 1962, to determine the national security impacts of imports of automobiles, which includes cars, SUVs, vans, light trucks and automotive parts. See, 83 Fed. Reg. 24735 (May 30, 2018). If the Secretary of Commerce finds that such products are being imported into the United States in such quantities and under such circumstances as to threaten to impair U.S. national security, the Secretary will recommend actions and steps, including imposing additional new tariffs, intended to address the perceived threat.
This proceeding is the second investigation of targeted imports initiated by the Trump Administration using the Section 232 national security authority, following the investigation and resulting proposed new tariffs on imports of steel and aluminum. The use of Section 232 to address imports of automobile and automotive parts is an unprecedented and novel approach to the law’s focus on U.S. national security.
Public Comments and Hearing
Interested parties are invited to submit written comments, data, analyses or other information pertinent to the investigation by June 22, 2018. Rebuttal comments are due by July 6, 2018. Comments must be addressed to "Section 232 Automobile and Automotive Parts Imports Investigation," and filed through the Federal eRulemaking Portal (www.regulations.gov, enter docket number DOC-2018-0002).
Commerce will hold a public hearing on the investigation on July 19 and 20, 2018 in its auditorium located at 1401 Constitution Avenue, N.W., Washington, D.C. 20230. Any person wishing to make an oral presentation at the hearing must submit a written request by June 22, 2018 with a summary of the expected testimony.
Areas of Particular Interest
In its notice, Commerce states that it is particularly interested in receiving comments and information on several issues, including the following:
-
Domestic production and productive capacity needed to meet projected national defense requirements;
-
The impact of foreign competition on the economic welfare of the U.S. automobile and automotive parts industry;
-
The displacement of domestic automobiles and automotive parts causing substantial unemployment, decrease in government revenues of government, loss of investment or specialized skills and productive capacity, or other serious effects; and
-
Whether and how the analysis of any factors changes when U.S. production by majority U.S.-owned firms is considered separately from U.S. production by majority foreign-owned firms.
