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Report: Trump administration weighing auto import tariff

The Trump administration is weighing whether to apply tariffs of up to 25% on imported vehicles on the grounds of national security, according to a May 23 report in The Wall Street Journal.

The report, citing industry officials briefed on the plan, said the administration is considering a Section 232 investigation similar to the one used for the 25% and 10% tariffs implemented on U.S. steel and aluminum imports in March. That investigation found that the United States' reliance on imports and declining domestic production of the metals posed a military and safety risk.

The White House did not immediately return a request for comment.

The potential auto probe could lead to tariff recommendations at its end, according to the report.

The administration has made strengthening domestic auto manufacturers like General Motors Co., Ford Motor Co. and Fiat Chrysler Automobiles NV a priority, including pushing for greater vehicle export market access in its pursued trade agreements with Japan and South Korea.

China has threatened tariffs on U.S.-made vehicles and other American exports but the Asian country has suspended the tariffs as the two nations work on a trade deal. Auto rules of origin and other vehicle-related issues have also held up negotiations of the North American Free Trade Agreement.