Beijing, Tokyo protest US probe into need for auto tariffs

China and Japan both condemned yesterday the Trump administration’s decision to launch an investigation into whether tariffs are needed on imports of vehicles and automotive parts into the United States.

China’s Commerce Ministry said Beijing would “firmly defend” its rights and interests against what it called the Trump administration’s abuse of national security provisions in trade.

Japan’s minister of Economy, Trade and Industry, Hiroshige Seko, said Japan, which accounts for about 40 percent of U.S. vehicle imports, will continue to remind U.S. officials that any trade measures must conform to the rules of the World Trade Organization.

If such a measure is taken, “it would be an extremely far-reaching trade sanction that would put the global market into turmoil,” Seko said. “We are extremely concerned.”

President Donald Trump invoked a provision authorizing the president to restrict imports and impose unlimited tariffs on national security grounds, known as Section 232 of the Trade Expansion Act of 1962.

The move comes as talks with Canada and Mexico over the North American Free Trade Agreement have stalled.

In Beijing, Commerce Ministry spokesman Gao Feng told reporters that abusing national security provisions would “undermine the multilateral trade system and disrupt the order of international trade.”

“China will pay close attention to the progress of the U.S. investigation, conduct a comprehensive assessment of the possible impact and firmly defend our legitimate rights and interests,” Gao told reporters at a news conference.

Japanese automakers did not issue individual comments but referred to Global Automakers, based in Washington, an industry group of international automakers that includes the Japanese. Global Automakers Chief Executive John Bozzella said the move would merely hurt American consumers.

“The U.S. auto industry is thriving and growing. Thirteen, soon to be 14 companies, produced nearly 12 million cars and trucks in America last year. To our knowledge, no one is asking for this protection. This path leads inevitably to fewer choices and higher prices for cars and trucks in America,” he said in a statement.

Last week Japan went to the World Trade Organization to warn of possible retaliation for tariffs on steel and aluminum, which Trump imposed in March. Japan is the only major U.S. ally that was not granted a temporary exemption from the tariffs. Japan estimates they will cost it about 50 billion yen (USD450 million) a year.

China is a relatively minor player in the U.S. auto import market, ranked 10th in dollar terms, but its massive car industry is eager to expand abroad. In auto parts exports to the U.S., China was ranked second last year. AP