Washington Likely to Impose Tariff on Vehicle Imports
The South Korean government has begun to respond to the U.S. Commerce Department’s report for tariff imposition on automobiles and auto parts exported to the United States. The Commerce Department submitted the report to President Donald Trump on Feb. 17 in accordance with Section 232 of the Trade Expansion Act of 1962.
No detail of the report has been disclosed so far. The Ministry of Trade, Industry and Energy of South Korea is going to find out details and hold a meeting on Feb. 19 to discuss countermeasures. The U.S. president is going to decide whether or not to follow the U.S. Commerce Department’s recommendation by May 18.
It is likely that the U.S. government will use the report as a leverage against China, Europe and Japan, which are in trade negotiations with itself. The United States already imposed tariffs on imported steel based on the same Section 232. Mentioning threats to national security, the U.S. government is likely to come up with a 25 percent tariff on automobiles, an import quota and various other import restriction measures.
“It took a month and a half for the U.S. government to disclose the report on its steel tariffs and the U.S. government used the report as its leverage during the period,” said the Ministry of Trade, Industry and Energy, adding, “We will do our utmost, with every possibility open, so that the adverse effects of the recent report on our industries can be kept to a minimum.”