Provisional agreement on a new North American trade pact was supposed to reduce economic uncertainty for the industry after months of acrimonious negotiations. But less than two weeks before the official signing of the U.S.-Mexico-Canada Agreement, auto interests are worried that U.S. tariffs on raw materials and vehicles will wipe out any potential benefits.
The auto industry plans a full-court press this week to inform the U.S. Congress about how the Trump administration is unfairly exploring possible light-vehicle tariffs, and whether the White House is abusing its trade authority.
A trade association argues that Section 232 of the 1962 Trade Expansion Act is unconstitutional because it allows the president unlimited ability to restrict trade on national security grounds and Congress can't delegate away all its powers without some guidance on how to act.
The trade association representing international automakers operating in the United States said imposing tariffs on imports of vehicles and parts for national security reasons would harm the auto industry by raising prices, lowering demand and inviting retaliation from trading partners.