The Trump administration is working on a plan to pursue tariffs on imported vehicles, according to a report Wednesday from The Wall Street Journal.
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The report comes the same day that President Donald Trump teased “big news coming soon” for American auto workers.
Trump’s plan for auto tariffs is similar to how the administration imposed duties on imported steel and aluminum. The Journal, citing industry officials briefed on the plan, said the administration may launch an investigation under Section 232 of the Trade Expansion Act to determine whether imported cars threaten national security. Officials could choose to impose tariffs as a result.
The administration is said to be weighing tariffs of up to 25%.
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The plan remains in the early stages, the report added. An investigation would take time, and the Commerce Department would need to issue its full report.
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A new tariff on cars, trucks and SUVs could face opposition from some industry groups, with foreign automakers and their dealers likely to be concerned about a price disadvantage against domestic rivals.
Many foreign manufacturers already operate plants in the U.S. For instance, Mercedes-Benz builds SUVs at a factory in Alabama, and BMW has a plant in South Carolina.
