Section 232 Auto Investigation (CRS Report for Congress)
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| Release Date |
Revised Jan. 31, 2020 |
| Report Number |
IF10971 |
| Report Type |
In Focus |
| Authors |
Rachel F. Fefer, Coordinator; Bill Canis; Brock R. Williams |
| Source Agency |
Congressional Research Service |
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Summary:
On May 23, 2018, the Trump Administration initiated a
Section 232 investigation into the imports of motor vehicles
and automotive parts (83 FR 24735) to determine if those
imports threaten to impair U.S. national security. The
Department of Commerce (Commerce) in part bases its
investigation on an increase of imported passenger
vehicles’ share of domestic sales (from 32% of U.S. vehicle
sales to 48% over the past 20 years). U.S. code does not
define national security, giving Commerce latitude in the
investigation’s scope.
The Section 232 investigation is a component of a broader
agenda related to U.S. trade and the auto industry including:
(1) expanding domestic auto manufacturing and domestic
content in autos; (2) addressing bilateral trade deficits; and
(3) reducing disparities in U.S. and trading partner tariff
rates. At 2.5%, U.S. passenger auto tariffs are lower than
some trading partners, including the European Union (EU),
with auto tariffs of 10%. U.S. tariffs on light trucks,
including pick-ups and sport utility vehicles, are much
higher at 25%. President Trump has stated a desire to place
a 25% tariff on auto imports. Several Members have voiced
concern about the investigation and potential tariffs. In July,
a bipartisan group of 149 Representatives sent a letter to
Commerce seeking to end the investigation. Pending
legislation could place some limitations on current
presidential authorities under Section 232.
Commerce received more than 2,000 comments on the
Section 232 investigation and held a public hearing on July
19. Labor union groups generally support the investigation.
The U.S. motor vehicle industry has voiced strong
opposition to tariffs and had a united position at the
Commerce hearing. While originally announcing plans to
conclude the investigation in August, Secretary Wilbur
Ross later stated that the volume and detail of the submitted
comments would preclude the Administration from making
a determination until after the November 2018 elections.
