The U.S. Commerce Department announced it has initiated an investigation under section 232 of the Trade Expansion Act of 1962, as amended, to determine whether imports of automobiles (including SUVs, vans, and light trucks) and automotive parts into the United States threaten to impair the national security.
According to a Commerce Department release, the investigation will consider whether the decline of domestic automobile and automotive parts production threatens to weaken the internal economy of the United States. A notice will be published in the Federal Register announcing a hearing date and inviting comment from industry and the public to assist in the investigation.
The U.S. Senate Finance Committee today released a statement from the Chairman Orrin Hatch (R-UT):
Commerce’s 232 investigation into the national security implications of trade in automobiles, trucks and auto parts is deeply misguided. For most Americans, cars are the second largest purchase they make, after their homes. Taxing cars, trucks and auto parts coming into the country would directly hit American families who need a dependable vehicle, whether they choose a domestic or a global brand. Instead of taking from the pocketbooks of hardworking Americans, I urge the administration to remain focused on addressing China’s trade practices and to work constructively with our trading partners to increase opportunities overseas for American businesses, farmers, ranchers and workers.
For more information, contact a professional with KPMG’s Trade & Customs practice:
Douglas Zuvich | +1 (312) 665-1022 | firstname.lastname@example.org
Andrew Siciliano | +1 (631) 425-6057 | email@example.com
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.