Bipartisan Letter Details Senators' Questions About Section 232 Auto Report

A dozen senators, led by Sens. Pat Toomey, R-Pa., Doug Jones, D-Ala., and Angus King, I-Maine, have asked Commerce Secretary Wilbur Ross to respond by early next month to follow-up questions they had after a staff briefing on the Section 232 auto report that has remained secret since it was given to President Donald Trump last month.

They wrote: "It was suggested to staff that any industry threatened by 'contraction' should be examined under the Section 232 statute. In light of this, what other industries has Commerce identified as being threatened by 'contraction?' How does Commerce draw a distinction between 'contraction' that is driven by cyclical demand patterns versus 'contraction' that justifies government intervention?"

The letter, sent March 19, was released to the press March 22. The senators also asked if any auto dealers, manufacturers, suppliers or unions told Commerce officials that they support trade restrictions on autos and auto parts. If so, they want to know who and other details of that support.

The letter asks: "How does Commerce define 'excessive imports?'" The senators said their staff were told that "market share" would be used as "an indicator to assess the health of the domestic auto industry. What does Commerce view as a healthy market share benchmark?" They also noted that Commerce officials told Senate staffers that restrictions could be necessary to protect the long-term health of the domestic auto industry. They asked: how is the domestic auto industry defined?

They asked if Commerce estimated the impact on the economy as a whole and U.S. exports from retaliation if additional Section 232 tariffs or quotas are imposed. And, they asked, "how did Commerce account for the fact that many auto parts are also used by non-automotive manufacturers, and that these parts often share the same HTS codes as light-duty parts?"

In addition to the lead authors, the following signed on: Sens. Cory Gardner, R-Colo.; Lamar Alexander, R-Tenn.; Jerry Moran, R-Kan.; Deb Fischer, R-Neb.; Joni Ernst, R-Iowa; Kyrsten Sinema, D-Ariz.; Mark Warner, D-Va.; Johnny Isakson, R-Ga.; and Thom Tillis, R-N.C.