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U.S. Commerce Department Recommends White House on How to Proceed with Auto Industry Tariffs

Some trade organizations also blasted the Commerce Department for keeping the details of its "Section 232" national security report shrouded in secrecy.

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Auto industry, tariffs
Robots swing a cab and bed into place for a new heavy duty pickup truck on the assembly line where Chevrolet Silverado trucks are being built at General Motors Flint Assembly in Flint, Michigan, Jan. 30, 2019. VOA

The U.S. auto industry urged President Donald Trump’s administration on Monday not to saddle imported cars and auto parts with steep tariffs, after the U.S. Commerce Department sent a confidential report to the White House late on Sunday with its recommendations for how to proceed.

Some trade organizations also blasted the Commerce Department for keeping the details of its “Section 232” national security report shrouded in secrecy, which will make it much harder for the industry to react during the next 90 days Trump will have to review it.

“Secrecy around the report only increases the uncertainty and concern across the industry created by the threat of tariffs,” the Motor and Equipment Manufacturers Association said in a statement, adding that it was “alarmed and dismayed.”

“It is critical that our industry have the opportunity to review the recommendations and advise the White House on how proposed tariffs, if they are recommended, will put jobs at risk, impact consumers, and trigger a reduction in U.S. investments that could set us back decades.”

Representatives from the White House and the Commerce Department could not immediately be reached.

Auto industry, tariffs
Some trade organizations also blasted the Commerce Department for keeping the details of its “Section 232” national security report shrouded in secrecy. VOA

The industry has warned that possible tariffs of up to 25 percent on millions of imported cars and parts would add thousands of dollars to vehicle costs and potentially devastate the U.S economy by slashing jobs.

Administration officials have said tariff threats on autos are a way to win concessions from Japan and the EU. Last year, Trump agreed not to impose tariffs as long as talks with the two trading partners were proceeding in a productive manner.

“We believe the imposition of higher import tariffs on automotive products under Section 232 and the likely retaliatory tariffs against U.S. auto exports would undermine – and not help – the economic and employment contributions that FCA, US, Ford Motor Company and General Motors make to the U.S. economy,” said former Missouri Governor Matt Blunt, the president of the American Automotive Policy Council.

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Some Republican lawmakers have also said they share the industry’s concerns. In a statement issued on Monday, Republican Congresswoman Jackie Walorski said she fears the Commerce Department’s report could “set the stage for costly tariffs on cars and auto parts.”

“President Trump is right to seek a level playing field for American businesses and workers, but the best way to do that is with a scalpel, not an axe,” she added. (VOA)

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White House in Support of Trump’s National Emergency Declaration

Trump said he declared the national emergency because he was unhappy with the amount of money Congress authorized.

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Auto industry, tariffs
Some trade organizations also blasted the Commerce Department for keeping the details of its "Section 232" national security report shrouded in secrecy. VOA

The White House is defending President Donald Trump’s declaration of a national emergency at the U.S.-Mexico border as multiple states prepare to file legal challenges and Democrats in Congress plan to vote their disapproval.

“He could choose to ignore this crisis, but he chose not to,” Trump adviser Stephen Miller, an immigration hardliner, told Fox News Sunday.

Miller assailed former Republican President George W. Bush for what he called an “astonishing betrayal” of the U.S. nearly two decades ago when four times as many immigrants were illegally entering the United States as now. But Miller said the “bottom line” is that “you cannot conceive of a strong nation without a secure border.”

He said Trump’s action is “defending our own borders.” He illegal immigration “is a threat in our country.”

Miller said Trump’s actions were justified under a 1976 law giving presidents authority to declare national emergencies, although none of the 59 declared since then has involved instances when a president has attempted to override congressional refusal to approve funding for a specific proposal.

Trump declared the national emergency on Friday to circumvent Congress, which had refused his request for $5.7 billion in wall funding, even as it approved $1.375 billion for barriers along about 90 kilometers of the 3,200-kilometer border. Trump plans to tap more than $8 billion in government funds authorized for other projects the build the wall, although lawsuits challenging the action are already being filed to block his transfer of money.

US, Donald Trump, National Emergency, White house
Border Patrol agent Vincent Pirro looks on near a border wall that separates the cities of Tijuana, Mexico, and San Diego, Feb. 5, 2019, in San Diego. VOA

California Attorney General Xavier Becerra told ABC’s This Week that his state and others would “definitely and imminently” file a legal challenge, arguing that people all over the United States would be harmed by Trump’s move because the diverted money would not be spent on needed services.

“Typically our presidents have focused on issues where the national interests are clearly at stake,” Becerra said about previous national emergency declarations. “The national interests are not at stake here. We have the lowest level of entries into the country by those who don’t have permission than we’ve had in some 20 years.”

Acting U.S. Defense Secretary Patrick Shanahan said he thinks he has “a lot of discretion” in deciding which funds previously allocated for defense needs can instead be used to build a border wall. “You can trust the numbers in terms of the potential. Then you gotta marry it up with where the money would be spent.” But he said money designated for military housing would not be spent on the wall.

Trump said he declared the national emergency because he was unhappy with the amount of money Congress authorized.

“I want to do it faster,” he said. “I could do the wall over a longer period of time. I didn’t need to do this. But I’d rather do it much faster.”

Trump’s staunchest critics, including Democrats who have announced they are running against him next year and other lawmakers, have attacked his national emergency declaration as an end-run around the constitutional provision that U.S. funding authorization lies with Congress and noted that he said that he did not need to take action.

US, Donald Trump, National Emergency, White House
Trump declared the national emergency on Friday to circumvent Congress, which had refused his request for $5.7 billion in wall funding. VOA

Democratic Congressman Adam Schiff, chairman of the House Intelligence Committee, told CNN, “If we give away, if we surrender the power of the purse… there will be little check and no balance left. It’ll not be a separation of powers anymore, just a separation of parties.”

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Journalist Bob Woodward, who chronicled the first year of the Trump presidency in a best-selling book called “Fear,” told Fox News he believes Trump made the national emergency declaration because “he looks strong. He looks tough to lots of people.”

Trump centered much of his successful 2016 campaign for the White House on a vow to build the wall and make Mexico pay for it. He long since abandoned direct payment from Mexico, when its leaders rejected the idea, and instead sought congressional approval of the U.S. taxpayer funding. (VOA)