Friday, January 24, 2020
U.S. Government Not Ruling Out Possibility of Automobile Tariffs
Negotiations Underway with Automakers
U.S. Government Not Ruling Out Possibility of Automobile Tariffs
  • By Jung Suk-yee
  • December 5, 2019, 08:47
Share articles

U.S. Commerce Secretary Wilbur Ross

U.S. Commerce Secretary Wilbur Ross said on Dec. 3 (local time) that the U.S. government is having negotiations with automakers and its imposition of tariffs on imported cars hinges on the result of the negotiations.

The U.S. government has moved ahead with its plan to impose 25 percent tariffs on automobiles and auto parts imported from Japan, South Korea and the European Union in accordance with Section 232 of the Trade Expansion Act of 1962. According to the section, the U.S. government can implement emergency import restrictions or impose high tariffs when it concludes that an imported product threatens the national security of the United States.

Earlier, the government was going to make a decision on tariffication on May 17 this year, but the decision was postponed by 180 days by U.S. President Donald Trump. The deadline was reached on Nov. 13, but the president is yet to make the decision. Experts point out that European and Japanese automobiles and auto parts are more likely to be targeted than the same products of South Korea.