
The damage to the auto sector from the president's latest trade proposal could dwarf any move he has made so far.
U.S. President Donald Trump is threatening to throw another monkey wrench into global trade with a 25 percent tariff on autos and auto parts. On May 23, the U.S. Commerce Department opened an investigation into whether foreign countries have taken advantage of the U.S. auto sector and whether it can be protected under the national security umbrella. The proposal raises a number of questions, but these are the important ones Stratfor is asking and answering: What Is a Realistic Timeline for the Investigation? From the start of the trade inquiry this week, the commerce secretary has 270 days to finish the report. The United States is turning to the same law it used to hit steel and aluminum imports — Section 232 of the Trade Expansion Act of 1962 — to delve into the necessity of cars, trucks and auto parts.