A similar investigation launched previous year resulted in a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum, although in many cases those tariffs have been suspended while the US negotiates with exporting countries.
Commerce Secretary Wilbur Ross announced he initiated a so-called Section 232 investigation on auto trade - which would provide the legal basis to impose tariffs, if his department finds imports threaten USA national security - after speaking with Donald Trump on the matter.
Trump is making the announcement as negotiations with Canada and Mexico over the North American Free Trade Agreement have stalled.
What Happened: Citing national security reasons, U.S. President Donald Trump's administration is considering new tariffs of up to 25 percent on imported vehicles, The Wall Street Journal reported May 23.
President Donald Trump predicted earlier that USA automakers and auto workers would be "very happy" with the outcome of the NAFTA talks. "Core industries such as automobiles and automotive parts are critical to our strength as a nation", the president said.
Almost half of the vehicles sold in the US are imported, with many coming from assembly plants in Mexico and Canada.
"This has been discussed for some time, which makes me suspect that this is being leaked to put pressure on Mexico during NAFTA and on other parties seeking steel and aluminum exemptions", said lawyer Dan Ujczo of Dickinson Wright.
President Donald Trump is considering applying tariffs on imported cars, according to a new report.
Section 232 allows the president to impose trade restrictions on national security grounds. He has also criticized European Union auto imports and tariffs and earlier this year threatened a "tax" on European imports.
By threatening a tariff on all imported cars, Mexico could be pressured into the tightening of the rules.
Trump hinted at the auto action early Wednesday when he tweeted, "There will be big news coming soon for our great American Autoworkers".
The Turkish taxes target U.S. coal, paper, walnuts, almonds, tobacco, paddy, automobiles, cosmetics, machinery and equipment, and petrochemical products, says Turkish Ministry of Economy.