The Trump administration plans to delay auto tariffs by up to six months, stopping itself for right now through widening global trade disputes, four sources told CNBC.
The White House faces a Saturday deadline to decide whether to slap duties on car as well as also auto part imports over national security concerns. After Saturday, the administration might have another 180 days to come to a decision as long as This particular will be negotiating with its counterparts.
President Donald Trump sees the tariffs as a way to gain leverage over trading partners such as the European Union as well as also Japan during ongoing talks. however the president risks sparking fresh global trade clashes if he goes through with car duties. The European Union, for example, has already prepared a list of retaliatory duties to implement if Trump targets autos.
Stocks gained back their their losses Wednesday following news of the administration’s plans, which were confirmed by a source briefed on the talks, an administration official as well as also two foreign officials. Shares of automakers such as Ford as well as also General Motors jumped.
The delay comes as the White House tries to strike a potential trade deal with China to end an escalating conflict. the earth’s two largest economies increased tariffs on one another in recent days, amplifying a fight in which has rattled financial markets as well as also threatened to drag on the global economy.
Trump will be mulling whether to use a national security justification to slap tariffs as high as 25% on cars. In February, the Commerce Department delivered a report to the president saying in which he could justify duties citing a national security threat. He also used the rationale to put tariffs on steel as well as also aluminum imports.
Lawmakers through both major parties have pushed Trump not to move forward with the auto duties. Republicans as well as also Democrats on Capitol Hill have previously criticized the national security grounds used to imposing duties on goods through allies such as Canada.
U.S. automakers have also opposed the potential tariffs. When the Commerce Department gave Trump its report in February, the industry group Alliance of Automobile Manufacturers said “imposing tariffs on imported vehicles as well as also parts might be a mistake, with significant negative consequences” for the auto industry as well as also its employees.
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