(Reuters) - A U.S. threat that it may introduce tariffs on foreign auto imports drew strong criticism on Thursday from the country’s main business lobbying group, which warned a “staggering” blow to the industry and the prospect of a global trade war.
President Donald Trump’s administration opened a trade investigation on Wednesday into whether vehicle imports had damaged the American auto industry. That could lead to tariffs of up to 25 percent on the same “national security” grounds used to impose U.S. steel and aluminum duties in March.
U.S. Commerce Secretary Wilbur Ross said on Thursday the investigation was still in its early stages but that other countries’ high, artificial barriers, such as tariffs and other interventions, have skewed the marketplace.
“Now it’s very difficult to get back to a reciprocal arrangement,” Ross said in an interview on CNBC, a day after announcing the probe, which could lead to new U.S. tariffs on imported vehicles.
The probe, launched under Section 232 of the Trade Expansion Act of 1962, will look at whether vehicle and parts imports are threatening the industry’s health and ability to research and develop advanced technologies, Ross said on Wednesday.
The U.S. Chamber of Commerce said it strongly opposes the move.
“If this proposal is carried out, it would deal a staggering blow to the very industry it purports to protect and would threaten to ignite a global trade war,” chamber President and Chief Executive Officer Thomas Donohue said in a statement. He urged the government to reverse course.
Canadian Prime Minister Justin Trudeau said the U.S. move was based on flimsy logic and clearly linked to talks to
