The release of a long-awaited administration report on the possibility of U.S. tariffs on auto imports is mostly contingent on talks with European automakers, Commerce Secretary Wilbur Ross said Tuesday as the administration prepared to meet with representatives of the industry.
“The president, as you know, has said that he will not impose tariffs in autos on the Europeans as long as negotiations with them are making good progress,” Ross said in an appearance on CNBC. “So, the timing of this whole thing will largely be driven by what happens in negotiations.”
Ross defined good progress as getting EU companies locating more production in the U.S.
“They all have big programs for electric cars. It is very important for us to get a lot of the manufacturing for electric cars done in the U.S. That is one of the big objectives we have,” Ross said.
White House officials, including Ross, economic adviser Larry Kudlow, and U.S. Trade Representative Robert Lighthizer, will meet Tuesday with representatives of European automakers Volkswagen, BMW, and Daimler in Washington, D.C. The move appears to be an effort by the White House to circumvent the usual trade policy negotiations process. The European Commission handles trade negotiations on behalf of the its members.
“We are worried about tariffs. The German automotive industry relies on open markets,” a senior German car executive told Reuters Monday. “Countries have interests that they intend to pursue. We will look at addressing these issues. In this context, we appreciate the talks are taking place, it is better to talk with each other than about each other.”
The Commerce Department completed the report several months ago, according to administration sources. Ross said Tuesday it was still going through it “normal interagency review process.” The report is widely expected to be used by the administration as a justification for the imposition of tariffs.
