Senate Finance Committee chairman Orrin Hatch of Utah announced a hearing next week meant to highlight the impact of the Trump administration’s tariff policies are having on the domestic auto industry.
“As the administration continues to rely on tariffs to resolve trade issues, I am convening a hearing to consider the impact on the U.S. auto industry,” Hatch said in a statement announcing the hearing Wednesday. “For a typical American family, a car is the second biggest purchase they will make. I look forward to hearing from our witnesses to learn more about the potential harm tariffs could have on the industry and how they may be passed along to consumers.”
Witnesses at the hearing will include Rick Schostek, executive vice president for Honda North America, and Josh Nassar, legislative director for the United Auto Workers, among others.
The Commerce Department is currently engaged in a probe into whether auto imports pose a national security threat and should be hit with tariffs to protect the domestic industry. A report was expected last month, but was put on indefinite hold by Secretary Wilbur Ross following new talks between the U.S. and Mexico involving the North American Free Trade Agreement and auto imports. National security was the same premise used by the administration to justify its 25 percent tariffs on steel and 10 percent on aluminum.
The talks involving the U.S. and Mexico resulted in a proposed new policy to increase to 75 percent the percentage of a car that has to be made in North America in order for it to be duty-free, up from NAFTA’s 62.5 percent, among other changes. The U.S. is currently engaged in talks with Canada to gain its assent to the deal.
