SECTION 232 INVESTIGATIONS ON STEEL, AUTOMOBILES AND AUTO PARTS

On May 31, President Trump signed two proclamations regarding the steel and aluminum tariffs under Section 232 of the Trade Expansion Act. These proclamations stated that measures have been put in place “to address the impairment to national security threatened by imports of steel and aluminum from Argentina, Brazil and Australia” but that the White House had not been able to secure similar measures with Mexico, Canada or the European Union. Accordingly, effective June 1, the president ordered the imposition of  a 25% tariff on steel imported from these three countries, although the White House indicated that it continues discussions with each country. USTMA issued a statement to reaffirm the tire industry’s disappointment in the decision and the impact that the tariffs can have on the tire manufacturing industry. 

In addition to the steel exports, Commerce Secretary Wilbur Ross announced a new Section 232 investigation on automobiles and auto parts. The purpose of the investigation is to “determine the effects on the national security of imports of automobiles, including cars, SUVs, vans and light trucks, and automotive parts.” At this early stage in the investigation, the scope is still being defined. USTMA is positioning to actively defend the tire industry in the investigation and is proceeding under the assumption that tires could be included in the scope. Comments are due to the Commerce Department by June 22, and hearings will be held July 19-20.

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