Presidential Proclamation 9888 was issued on May 17, 2019, postponing any potential Section 232 additional duties on imports of passenger vehicles, light duty trucks, and certain automobile parts for 180 days.
Product covered:
- Passenger vehicles -including sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans.
- Light trucks
- Certain automobile parts –including engines and engine parts, transmissions and powertrain parts, and electrical components
An investigation under Section 232 of the Trade Expansion Act of 1962 for automobiles was first initiated on May 23, 2018, to combat threats of impairment to U.S. national security.
In February 2019, the President received a report from the Secretary of Commerce, which found that U.S. based automotive research and development (R&D) is critical to national security, as is it used by the U.S. defense industries for development of essential technologies which maintain our military superiority.
The President directed the U.S. Trade Representative (USTR) to pursue the negotiation of agreements to address these threats to U.S. national security, especially with the European Union (EU) and Japan (which impose significant barriers to imports of U.S. autos), as well as any other country the USTR deems appropriate.
The renegotiated Korea-U.S. (KORUS) Free Trade Agreement, and the new U.S.-Mexico-Canada (USMCA) will also help address the threat to national security.
The USTR will update the President with the progress of negotiations within the next 180 days.
The Secretary of Commerce will continue to monitor imports, consulting with senior executive branch officials, and inform the President of circumstances which might need further action by the President under Section 232.
If you have any questions regarding the potential for Section 232 on imports of automobiles and parts, Livingston can help! Please contact either your Livingston account manager or our regulatory affairs group at usregaffairs@livingstonintl.com