U.S. Auto Parts Tariff Expansion Faces Industry Pushback

The U.S. Commerce Department is evaluating industry requests to impose additional tariffs on imported auto parts, citing national security grounds. This move follows President Trump's previous imposition in May of a 25% tariff on over $460 billion worth of vehicle and auto parts imports.

The department announced that domestic producers and industry associations could seek tariffs on parts deemed essential for national security. The automotive sector is rapidly advancing in technologies like alternative propulsion and autonomous driving, which might have implications for defense applications.

Recently, the Commerce Department increased tariffs on over 400 products, including auto parts like exhaust systems and electrical steel. Trade groups, including the Chamber of Commerce, voiced opposition to the sudden tariff expansions, citing increased costs and business uncertainty.