The Trump administration on Wednesday launched an investigation into whether tariffs are needed on the imports of automobiles into the United States, moving swiftly as talks over the North American Free Trade Agreement have stalled. President Donald Trump predicted earlier that U.S. automakers and auto workers would be "very happy" with the outcome of the NAFTA talks.
President Donald Trump's hair is ruffled by a breeze as he speaks to the media on the South Lawn of the White House in Washington, Wednesday, May 23, 2018, en route to a day trip to New York. (AP Photo/Jacquelyn Martin)
The White House said in a statement that the president had asked Commerce Secretary Wilbur Ross to consider whether the imports of automobiles, including trucks, and automotive parts threaten U.S. national security. The president said in the statement that "core industries such as automobiles and automotive parts are critical to our strength as a Nation."
The U.S. remains far apart on the talks over rewriting the trade pact with Canada and Mexico, with the discussions at an impasse over rules for car production. The initiation of the trade investigation could be seen as an attempt to gain leverage in the talks with the two U.S. neighbors. Treasury Secretary Steven Mnuchin has said that efforts to renegotiate the trade agreement could spill into next year.
Nearly half of the vehicles sold in the U.S. are imported, with many coming from assembly plants in Mexico and Canada. During a meeting with auto executives earlier this month, Trump said he would push for an increase in the production of vehicles built at U.S. plants. He has also criticized European Union auto imports and tariffs and earlier this year threatened a "tax" on European imports.
A person familiar with the discussions said the president has suggested seeking new tariffs of 20 to 25 percent on automobile imports. The person spoke on condition of anonymity and was not authorized to speak about private deliberations.
Trump brought a little-used weapon to his fight to protect auto workers: Section 232 of the Trade Expansion Act of 1962. The provision authorizes the president to restrict imports and impose unlimited tariffs on national security grounds.
The Trump administration used that authority in March to slap tariffs of 25 percent on imported steel and 10 percent on aluminum imports. Until then, the United States had pursued only two such investigations since joining the World Trade Organization in 1995. Both times — in a 1999 case involving oil imports and a 2001 case involving iron ore and steel imports — the Commerce Department refused to recommend sanctions.
Critics fear that other countries will retaliate or use national security as a pretext to impose trade sanctions of their own.
Daniel Ujczo, a trade lawyer with Dickinson Wright PLLC, said the tariff threat is likely meant to pressure Mexico into accepting U.S. demands for NAFTA changes that would shift more auto production to the U.S. from Mexico. But he questioned whether it would work.
"I do not believe that it will have the desired effect," Ujczo said. "Everyone knows that (the investigation) will take too long and has no chance of surviving any legal challenge."
Trump offered a hint about the move earlier in the day on the South Lawn, telling reporters that "you'll be seeing very soon what I'm talking about." He noted that both Mexico and Canada have been "very difficult to deal with" during the negotiations.
"I am not happy with their requests. But I will tell you in the end we win, we will win and will win big," Trump said before departing for New York. He said America's neighbors have been "very spoiled because nobody's done this but I will tell you that what they ask for is not fair. Our auto workers are going to be extremely happy."
Mexico has so far resisted U.S. attempts to get higher regional content rules in the auto industry and move production to higher-wage U.S. and Canadian factories. The U.S. has also sought to change NAFTA's dispute-resolution system, and include a sunset clause that would allow countries to exit after five years.
The Trump administration has already missed an informal deadline that had been set by House Speaker Paul Ryan to get a revamped deal to Congress in time for lawmakers to vote on it in a midterm election year. Mexico, meanwhile, will hold presidential elections on July 1 and Andres Manuel Lopez Obrador, the leftist candidate who has led in polls, has said the re-negotiation shouldn't be rushed through and should be left to the winner of the election.
If the negotiators fail to agree to a revamped version of NAFTA, the discussions could be extended into 2019. Trump could also carry out his threat to abandon the agreement that he has long railed against, throwing commerce among the three countries into disarray.
Trump has sought to overhaul NAFTA in an effort to return auto production to the United States and reduce America's trade deficit. The U.S. has been demanding that a percentage of a car's content of auto parts originate in a country — the U.S. or Canada — with average auto worker wages of about $15 an hour to qualify for NAFTA's duty-free status.
But companies have built supply chains that straddle NAFTA borders and changing the rules could disrupt their operations, raise costs and potentially put them at a competitive disadvantage with manufacturers in Asia and Europe.
OKLAHOMA CITY (AP) — Just a few days ago, the Oklahoma City Thunder looked like a young team struggling through their first playoff game together.
On Wednesday night, they looked like grizzled playoff veterans.
Shai Gilgeous-Alexander scored 33 points and the top-seeded Thunder beat the New Orleans Pelicans 124-92 to take a 2-0 lead in their first-round Western Conference playoff series.
Gilgeous-Alexander said the Thunder remained focused instead of worrying about outside issues such as other highly seeded teams struggling at home.
“I think it just goes back to us prioritizing winning,” he said. “And all those things are distractions that get in the way of winning. And every night, all 15 of us go to bed and want to win the next game, want to win the next day. And we do everything we can to do so.”
Chet Holmgren had 26 points and seven rebounds and Jalen Williams added 21 points for the Thunder, who shot 59% from the field and made 14 of 29 3-pointers.
Jonas Valanciunas scored 19 points and Herb Jones and Brandon Ingram added 18 each for the Pelicans.
In Game 1, Valanciunas had 20 rebounds, including nine offensive, and the Pelicans outrebounded the Thunder 52-44. On Wednesday, Oklahoma City outrebounded New Orleans 37-35 and held the Pelicans to eight offensive boards.
The Pelicans continued to struggle on offense without top scorer Zion Williamson, who remained out with a strained left hamstring. Ingram, New Orleans' No. 2 scorer in the regular season, got off just 10 shots in Game 2 as Oklahoma City's Lu Dort harassed him throughout the night. Ingram made just 5 of 17 field goals in Game 1.
The Thunder also scored 22 points off New Orleans’ 18 turnovers.
Game 3 is Saturday in New Orleans.
“Now, the challenge is to continue to grow and learn and improve with the series because the Pelicans are going to improve," Thunder coach Mark Daigneault said. "They’re a good team that’s going home and they’re well coached. They’re going to get better. You know so we have to continue to get better.”
The pace picked up significantly from Sunday's game, which Oklahoma City won 94-92. The Thunder, who averaged 120.1 points in the regular season, were much more comfortable with it.
“In the first game, I thought both teams were kind of calibrating," Daigneault said. "And, tonight we had much quicker recognition of the way that they were guarding us, where we wanted to attack, and we got to those things pretty well.”
Valanciunas scored 11 points in the first three minutes, but Holmgren countered with 13 points in the first seven minutes.
Gilgeous-Alexander picked up where Holmgren left off. He didn't score for the first nine minutes, then scored seven in the final three minutes of the quarter to help the Thunder take a 35-22 lead. Holmgren's 15 points were the most by a Thunder rookie in any quarter of a playoff game.
“I thought they turned up the pressure offensively,” Pelicans coach Willie Green said. “They got some early 3's and that opened the floodgates up for them.”
Oklahoma City led 63-50 at halftime. Holmgren scored 20 points and Gilgeous-Alexander added 16 before the break.
The Thunder extended their lead to 92-74 at the end of the third, and Gilgeous-Alexander and Holmgren went to the bench for good with the Thunder leading 120-86 in the fourth.
“Tough one for us,” Green said. “Give them credit, they took care of home court. It was a dominant win for them. So we’ll get home, we’ll regroup and get back after it.”
AP NBA: https://apnews.com/hub/NBA
New Orleans Pelicans forward Brandon Ingram, right, drives against Oklahoma City Thunder guard Luguentz Dort during the second half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)
Oklahoma City Thunder forward Jalen Williams dunks as New Orleans Pelicans forward Brandon Ingram watches during the second half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)
Oklahoma City Thunder guard Luguentz Dort (5) looks to pass the ball away from New Orleans Pelicans guard Trey Murphy III (25) during the second half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)
Oklahoma City Thunder forward Chet Holmgren (7) prepares to shoot from between New Orleans Pelicans forward Herbert Jones (5) and guard CJ McCollum (3) during the first half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)
New Orleans Pelicans guard CJ McCollum (3) shoots against Oklahoma City Thunder forward Chet Holmgren (7) as guard Shai Gilgeous-Alexander (2) watches during the second half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)
New Orleans Pelicans forward Zion Williamson shouts from the bench during the second half in Game 2 of the team's NBA basketball first-round playoff series against the Oklahoma City Thunder, Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)
Oklahoma City Thunder guard Luguentz Dort, right, prepares to shoot next to New Orleans Pelicans forward Brandon Ingram during the first half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)
New Orleans Pelicans center Jonas Valanciunas (17) is defended by Oklahoma City Thunder forward Chet Holmgren (7) during the first half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)
New Orleans Pelicans center Jonas Valanciunas, right, shoots a reverse shot against Oklahoma City Thunder forward Chet Holmgren (7) during the first half in Game 2 of an NBA basketball first-round playoff series, Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)
Oklahoma City Thunder guard Shai Gilgeous-Alexander, right, drives against New Orleans Pelicans guard CJ McCollum, left, during the first half in Game 2 of an NBA basketball first-round playoff series, Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)
Oklahoma City Thunder guard Shai Gilgeous-Alexander (2) shoots next to New Orleans Pelicans forward Herbert Jones (5) as Pelicans guard Trey Murphy III (25) watches during the first half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)
