WTO Member Countries Against U.S. Tariffs on Automobiles

Main U.S. trading partners, including the European Union, China, and Japan, expressed deep concern on Tuesday at a World Trade Organization (WTO) meeting regarding potential new U.S. tariffs on imports of automobiles and automotive parts.

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Japan, which, along with Russia, initiated a discussion at the WTO Council on trade exchange, warned that such measures could trigger a spiral of countermeasures and ultimately lead to the collapse of the multilateral trading system, according to an unnamed official present at the meeting.

More than 40 WTO members, including 28 EU countries, warned that due to the importance of automobiles for global trade, U.S. tariffs could cause serious disruptions in the global market and jeopardize the WTO system.

Concerns regarding the announced U.S. trade restrictions were expressed in turn by China, Canada, Switzerland, Norway, Turkey, Costa Rica, Hong Kong, Venezuela, Singapore, Brazil, South Korea, Mexico, Qatar, Thailand, and India, also highlighting doubts that they would violate WTO regulations.

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A Russian official stated at the WTO Council meeting that discussions about U.S. investigations had taken place at several meetings over the past year, but the situation has since worsened.

The United States is losing its reputation as a reliable trading partner, claimed the Russian envoy, adding that Washington could soon initiate an investigation that could result in import tariffs on uranium products.

An American diplomat emphasized that this issue is already the subject of formal disputes in the WTO and should not be discussed at the Council meeting, according to an unnamed official for Reuters.

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The United States has imposed tariffs on imports of steel and aluminum from Europe and has also launched an investigation into the potential impact of imports of automobiles and automotive parts on national security, which could ultimately result in tariffs on those products. U.S. President Donald Trump stated at the end of last week that the investigation would be completed in three to four weeks.

The European Union warned the United States that imposing tariffs on automobiles and automotive parts would harm the U.S. automotive industry and would likely prompt U.S. trading partners to take countermeasures that would encompass $294 billion of U.S. exports.