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Wilbur Ross: 'Too Early to Say' Whether National Security Probe Will Bring Auto Tariffs

Commerce Secretary Wilbur Ross says the government is still analyzing whether it will impose tariffs on imported vehicles and auto parts.
Commerce Secretary Wilbur Ross says the government is still analyzing whether it will impose tariffs on imported vehicles and auto parts. Photo: Andrew Harrer/Bloomberg News

WASHINGTON—Commerce Secretary Wilbur Ross said Thursday that it is “too early” to say whether the Trump administration will move ahead with proposed tariffs of up to 25% on imported vehicles and auto parts.

Speaking ahead of a hearing in Washington, Mr. Ross said the government is still analyzing whether it will impose tariffs on national security grounds, following a similar move on metals imports earlier this year.

“It’s obvious by the attendance here this morning how vital this industry is to the U.S. and global economy,” Mr. Ross said.

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The Commerce Department hearings are part of an investigation launched in May into whether the Trump administration can use a 1962 national-security law to impose duties on foreign-sourced cars and car parts.

The Trump administration’s hard line has won praise in some quarters, including the country’s largest automotive labor union, the United Auto Workers, which has expressed qualified support and criticized industry moves to shift production outside the U.S.

Representatives for the biggest auto makers, components suppliers and dealers are expected to testify Thursday against the tariffs, arguing they would hurt the economy and put jobs at risk by raising consumer prices and sparking a trade war.

The European Union said earlier Thursday that it would retaliate if the U.S. imposes tariffs on imports from Europe, cautioning Washington against unilateral measures that threaten global free-trade.

Opponents of proposed tariffs also include the American Automotive Policy Council, a lobby representing General Motors Co. , Ford Motor Co. and Fiat Chrysler Automobiles N.V .

“There is no evidence that automotive imports pose a threat to national security,” said Matt Blunt, president of the group. Mr. Blunt, former governor of Missouri, said there is domestic capacity to meet any national-security requirements.

Auto industry officials have grown increasingly alarmed at the prospect of adding yet another tariff to those already imposed by the White House earlier this year on aluminum, steel and some Chinese-made goods.

Peter Welch, president of the National Automobile Dealers Association, said “a 25% tariff applied to all imports would hurt auto manufacturers, dealers, consumers and the economy as a whole. And the hardest hit would be our customers.”

Write to Josh Zumbrun at Josh.Zumbrun@wsj.com and Chester Dawson at chester.dawson@wsj.com

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