A US Commerce Department report has concluded that American auto imports threaten national security, setting the stage for possible tariffs by the White House, a person familiar with the matter said Thursday.
The investigation, ordered by President Donald Trump in May, is "positive" with respect to the central question of whether the imports "impair" US national security, said a European auto industry source.
The report, which is expected to be delivered to the White House by a Sunday deadline, has been seen as a major risk for foreign automakers.
Trump has threatened to slap 25 percent duties on European autos, especially targeting Germany, which he says has harmed the American car industry.
Trump will then have 90 days to decide whether to move ahead with tariffs.
The White House has used the national security argument - saying that undermining the American manufacturing base impairs military readiness, among other claims - to impose steep tariffs on steel and aluminum imports, drawing instant retaliation from the EU, Canada, Mexico and China.