Trump Initiates Section 232 Investigation on Auto Imports

President Trump has ordered a Section 232 investigation to determine whether imports of automobiles threaten national security interests. The investigation comes on the heels of China’s announcement that it will drop tariffs on imported vehicles from 25 percent to 15 percent and tariffs on autoparts to 6 percent.

The reductions are presumably positive for the U.S. automakers–except that most of the cars General Motors and Ford sell in China are made in China. Foreign-owned automakers that build in the United States will benefit the most from the reduced tariffs, such as BMW and Mercedes-Benz.