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BUSINESS Saturday 18 May 2019
A25

Trump lifts tariffs on Mexico, Canada, delays auto tariffs

By PAUL WISEMAN, TOM KR- ing which is “weakening
ISHER, KEVIN FREKING and innovation and, accord-
ROB GILLIES ingly, threatening to impair
The Associated Press our national security,” the
WASHINGTON (AP) — statement said.
Bogged down in a sprawl- The market share of ve-
ing trade dispute with U.S. hicles produced and sold
rival China, President Don- in the U.S. by American-
ald Trump took steps Fri- owned automakers, the
day to ease tensions with statement said, has de-
America’s allies — lifting clined from 67% in 1985 to
import taxes on Canadian 22% in 2017.
and Mexican steel and alu- But the statistics don’t
minum and delaying auto match market share figures
tariffs that would have hurt from the industry. A mes-
Japan and Europe. sage was left Friday seek-
By removing the metals tar- ing an explanation of how
iffs on Canada and Mexico, Commerce calculated the
Trump cleared a key road- 22%.
block to a North American In 2017, General Motors,
trade pact his team nego- Ford, Fiat Chrysler and Tes-
tiated last year. As part of la combined had a 44.5%
Friday’s arrangement, the Cars for export and import are stored in front of containers on Thursday, May 16, 2019 at the harbor share of U.S. auto sales,
Canadians and Mexicans in Bremerhaven, Germany, with 2 million vehicles per annum one of the largest automobile hubs according to Autodata
agreed to scrap retaliatory in the world. Corp. Those figures include
tariffs they had imposed on Associated Press vehicles produced in other
U.S. goods. Earlier Friday, the White the United States until Fri- meet resistance in Con- countries.
“I’m pleased to announce House said Trump is delay- day. gress. The United States last It’s possible that the Com-
that we’ve just reached ing for six months any deci- The new trade deal — year imported $192 billion merce Department didn’t
an agreement with Cana- sion to slap tariffs on foreign the U.S.-Mexico-Canada worth of passenger vehi- include Fiat Chrysler, which
da and Mexico, and we’ll cars, a move that would Agreement — needs ap- cles and $159 billion in auto is now legally headquar-
be selling our product into have hit Japan and the Eu- proval from legislatures in parts. tered in The Netherlands
those countries without the rope especially hard. the U.S., Canada and Mex- “I have serious questions but has a huge research
imposition of tariffs, or ma- Trump still is hoping to use ico. Several key U.S. law- about the legitimacy of and development opera-
jor tariffs,” Trump said in a the threat of auto tariffs to makers were threatening to using national security as tion near Detroit. It had 12%
speech to the National As- pressure Japan and the reject the pact unless the a basis to impose tariffs on of U.S. auto sales in 2017.
sociation of Realtors. European Union into mak- tariffs were removed. And cars and car parts,” Iowa The Commerce figures
In a joint statement, the ing concessions in ongoing Canada had suggested Republican Sen. Chuck also do not account for
U.S. and Canada said they trade talks. it wouldn’t ratify any deal Grassley, chair of the Sen- research by foreign auto-
would work to prevent “If agreements are not with tariffs still in place. ate Finance Committee, makers. Toyota, Hyundai-
cheap imports of steel and reached within 180 days, Thomas Donohue, presi- said in a statement Friday. Kia, Subaru, Honda and
aluminum from entering the president will determine dent of the U.S. Chamber He’s working on legislation others have significant re-
North America. The provi- whether and what further of Commerce, said the lift- to scale back the presi- search centers in the U.S.
sion appeared to target action needs to be taken,” ing of the tariffs “will bring dent’s authority to impose Meanwhile, Trump is locked
China, which has long White House press secre- immediate relief to Ameri- national security tariffs un- in a high stakes rumble with
been accused of flooding tary Sarah Sanders said in a can farmers and manufac- der Section 232. China.
world markets with subsi- statement. turers. Critically, this action In a statement, the White The U.S. accuses Beijing of
dized metal, driving down In imposing the metals tariffs delivers a welcome burst of House said that Commerce stealing trade secrets and
world prices and hurting and threatening the ones momentum for the USMCA Secretary Wilbur Ross has forcing American compa-
U.S. producers. The coun- on autos, the president was in Congress.” determined that imported nies to hand over technol-
tries could also reimpose relying on a rarely used Canadian Prime Minister vehicles and parts are a ogy in a head-long push
the tariffs if they faced a weapon in the U.S. trade Justin Trudeau credited his threat to national security. to challenge American
“surge” in steel or alumi- war arsenal — Section 232 government for holding out Trump deferred action on technological dominance.
num imports. of the Trade Expansion Act to get the tariffs removed. tariffs for 180 days to give The two countries have
In Washington, some were of 1962 — which lets the “We stayed strong,” he negotiators time to work slapped tariffs on hundreds
urging Trump to take ad- president impose tariffs on said. “That’s what workers out deals but threatened of billions of dollars in each
vantage of the truce with imports if the Commerce asked for. them if talks break down. other’s products. Talks
U.S. allies to get even Department deems them a These tariffs didn’t make In justifying tariffs for nation- broke off last week with no
tougher with China. threat to national security. sense around national se- al security reasons, Com- resolution.
“China is our adversary,” But the steel and aluminum curity. They were hurting merce found that the U.S. The hostilities between
said Sen. Ben Sasse, R-Neb. tariffs were also designed Canadian consumers, Ca- industrial base depends the world’s two biggest
“Canada and Mexico are to coerce Canada and nadian workers and Ameri- on technology developed economies have weighed
our friends. The president Mexico into agreeing to a can consumers and Ameri- by American-owned auto heavily the past couple
is right to increase pressure rewrite of North American can workers.” companies to maintain U.S. of weeks on the U.S. stock
on China for their espio- free trade pact. In fact, the Trump had faced a Satur- military superiority. market, threatening a long
nage, their theft of intellec- Canadians and Mexicans day deadline to decide Because of rising imports of rally that Trump touted as
tual property, and their hos- did go along last year with what to do about the auto autos and parts over the a vindication of his eco-
tility toward the rule of law. a revamped regional trade tariffs. past 30 years, the market nomic policies. Opening a
The president is also right deal that was to Trump’s lik- Taxing auto tariffs would share of U.S.-owned auto- new front in the trade wars
to be deescalating tension ing. But the administration mark a major escalation in makers has fallen. That has against EU and Japan likely
with our North American al- had refused to lift the taxes Trump’s aggressive trade caused a lag in research would have worried inves-
lies.” on their metals coming into policies and likely would and development spend- tors even more.q