By WSJ City 

American car buyers are facing sticker shock as President Trump weighs new tariffs on imported vehicles and auto parts. The Commerce Department had until Sunday to submit an investigation into whether imported cars and parts pose a national-security threat under Section 232 of US trade law.

KEY FACTS

   -- Trump has already voiced support for levies of 20%. 
 
   -- If the tariffs are imposed, then prices of cars from Japan, Germany and 
      South Korea would rise sharply. 
 
   -- That's assuming those countries don't receive exemptions. 
 
   -- But buyers of domestically produced cars could be shelling out more too 
      if tariffs are imposed on components. 
 
   -- The Commerce Department declined to comment on the report. 
 
   -- It gives Trump 90 days to announce tariffs or other barriers. 

WHY THIS MATTERS

Detroit auto makers, foreign brands operating in the US and auto-parts suppliers worry any duties would disrupt their increasingly international supply chains or lead to retaliatory tariffs on their exports. Car assemblers and part makers are already paying more for steel and aluminum due to tariffs. Dealers are worried about declining sales. Industry officials are not expecting the report to be made public initially, and the department will likely recommend several possible tools for the president, including big tariffs on imported cars and potential trade barriers on parts used in autonomous and electric vehicles, they said.

A fuller story is available on WSJ.com

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(END) Dow Jones Newswires

February 18, 2019 02:23 ET (07:23 GMT)

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