A report sent to U.S. President donald trump that could unleash steep tariffs on imported cars is already sparking backlash…
The purpose of the commerce department report, called a "section 232," is to investigate the effects of imports on national security.
The Trump administration has in the past cited national security to slap import taxes on s steel and aluminum.
(SOUNDBITE) (English) U.S. PRESIDENT DONALD TRUMP SAYING:
"Today, I'm defending America's national security, by placing tariffs on foreign imports of steel and aluminum."
One group representing auto parts suppliers warned that new tariffs would stifle investment in the U.S. At a time when the auto industry is already reeling from declining sales and rising trade barriers.
The U.S. Commerce department said they wouldn't comment on the report, but already the auto industry has released what's expected to be a massive lobbying campaign against it.
The president has 90 days to make a decision on whether he'll act upon its recommendations.
Auto industry officials expect the report will include at least some tariffs on assembled cars and parts or on technologies.
Also vowing to retaliate if their cars are hit with tariffs: the European Union.
(SOUNDBITE) (English) EU COMMISSION SPOKESMAN, MARGARITIS SCHINAS , SAYING:
"Were this report translates into actions detrimental to european exports, the European commission would react in a swift and adequate manner."
A report from the center for automotive research published last week warned that it's worst-case scenario, a tariff of 25 percent, would cost more than 350,000 U.S. Jobs in carmaking and related industries.