Trudeau says threatened USA auto tariffs based on flimsy logic

Trump administration weighs slapping tariffs on auto imports

Trump's scolding comes amid reports in US media that the White House is considering steep tariffs of 25 per cent on imported vehicles. The initiation of the trade investigation could be seen as an attempt to gain leverage in the talks with the two US neighbours.

"Today, I met with Secretary of Commerce Wilbur Ross to discuss the current state of our automobile industry".

President Donald Trump's unexpected announcement that the United States would consider tariffs on imports of foreign vehicles has raised red flags among trade experts and prompted new fears of a trade war with some of America's closest allies.

Mr Trump said the U.S. vehicle industry was "critical to our strength as a nation" and ordered the Department of Commerce to investigate.

In his comments to reporters on the South Lawn of the White House, Trump also predicted that, in the end, the three countries will "get along".

In a Twitter message on Wednesday, he said, "There will be big news coming soon for our great American Autoworkers. After many decades of losing your jobs to other countries, you have waited long enough!", he tweeted.

Both countries are part of the North American Free Trade Agreement (Nafta), which the Trump administrations wants to renegotiate in a bid to boost the United States manufacturing sector.

GOP Sen. Pat ToomeyPatrick (Pat) Joseph ToomeyWH backpedals on Trump's "due process" remark on guns Top GOP candidate drops out of Ohio Senate race Newly declassified memos detail extent of improper Obama-era NSA spying MORE (Pa.), a consistent Trump ally, added that the tariffs are a "bad idea" and that "doing it under the false pretense of national security-Section 232-is an even worse idea, as it invites retaliation and weakens our credibility on actual trade disputes".

In Beijing, Commerce Ministry spokesman Gao Feng told reporters that abusing national security provisions would "undermine the multilateral trade system and disrupt the order of worldwide trade".

The aim of the probe, it said, is to determine whether imports of automobiles to the United States are damaging the economy and pose a threat to the country's national security.

Trump administration weighs slapping tariffs on auto imports

Republican senators, however, are rushing to make it clear that they don't believe auto tariffs would be a "very good activity". An additional tariff on vehicles of up to 25 per cent is also under consideration, according to a person familiar with the matter who asked not to be identified. An agreement over auto-production rules has been one of the key sticking points in nine months of talks.

The United States imported 8.3 million vehicles in 2017 worth $US192 billion, including 2.4 million from Mexico, 1.8 million from Canada, 1.7 million from Japan, 930,000 from South Korea and 500,000 from Germany, according to U.S. government statistics.

Trudeau reiterated his government's commitment to ensure a hotly contested Kinder Morgan Canada pipeline expansion project would be built, but said little about how that could be achieved if the firm walked away as it is threatening to do unless Ottawa deals with opposition to the plan.

It also is unlikely to pass muster with the World Trade Organization.

VDA noted that actual trade flows in the auto industry are different to the impression given in policy statements by Trump.

On Wednesday, President Trump said automakers would be "very happy" with his announcement.

Trump previously sought to use the steel and aluminum tariffs as a negotiating tactic in the NAFTA talks. At the same time, the United States exported almost 2 million vehicles worldwide worth $US57 billion.

Mexico has so far resisted US attempts to get higher regional content rules in the auto industry and move production to higher-wage USA and Canadian factories. "We will win, and we'll win big", said Trump, who vowed to scrape the 24-year trade agreement during his contentious presidential campaign. She spoke to her counterparts, USA trade czar Robert Lighthizer and Mexican economic secretary Ildefonso Guajardo, on Monday and said they all agreed "to be in constant contact".

"Now it's very hard to get back to a reciprocal arrangement", Ross said in an interview on CNBC, a day after announcing the investigation.

Trump considers tariffs on foreign cars because they use Chinese steel
According to multiple reports , the USA is now working on a deal with China to potentially prevent ZTE from going out of business. In return , China will eliminate tariffs on U.S. agriculture or agree to buy more farm products from the United States.

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