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00:00:02
>> President Trump sparking criticism from Tokyo to Toronto, Thursday, after ordering an investigation of auto imports that could ultimately lead to higher tariffs. Canadian Prime Minister Justin Trudeau telling Reuters exclusively the probe is based on flimsy logic aimed at the sole purpose of trying to strong arm Canada and Mexico into a new NAFTA deal.
00:00:24
Reuters' Washington Correspondent, David Shepardson, is on the story.>> For months, Canada, the United States, and Mexico have been at loggerheads over the auto provisions of the renegotiation of NAFTA. And a lot of observers here and auto industry officials see the attempt by the Trump administration to begin the process of invoking national security authority to impose tariffs on vehicles across the world.
00:00:55
As a way of trying to extract more concessions from Mexico and Canada in those talks.>> But Canada and Mexico would send about 4 million cars and trucks to the US annually aren't the only ones upset. Toyota lashed out on Twitter, quote, tariffs on auto imports could hurt American jobs and raise consumer costs.
00:01:17
And there's also concerns from German car makers DMW, and Mercedes parent Daimler. Which along with Volkswagen control more than 90% of the North American premium market. A large chunk of sales for dealerships across the US. And that's one of the reasons the backlash isn't from just abroad.>> You have also seen much stronger immediate opposition from both business groups, and a lot of Republicans.
00:01:43
The Chamber of Commerce, the National Association of Manufacturers, and both auto trade groups have all come out opposed along with auto parts suppliers.>> Investors, however, didn't place any major bets on potential winners or losers in the global auto industry. Skeptical, Congress would allow anything to harm such an important engine of economic activity.