Washington: President Donald Trump on Friday announced a six-month delay in imposing steep tariffs on auto imports, seeking to pressure Europe and Japan
Washington: President Donald Trump on Friday announced a six-month delay in imposing steep tariffs on auto imports, seeking to pressure Europe and Japan into bargaining table concessions on trade.
The decision marked a temporary reprieve from what would have been a sizeable escalation in Trump’s multi-front trade wars.
Trump’s threat targets a major chunk of global economic activity with profound disruptions. Hundreds of billions of dollars in autos are manufactured, shipped and sold internationally every year.
In a proclamation, the president directed US Trade Representative Robert Lighthizer to update him within 180 days on the outcome of negotiations with the EU, Japan and “any other country” Lighthizer deems appropriate.
By leaving the threat of tariffs, Trump’s move raises the temperature in European capitals already angered by the imposition of punishing US duties on steel and aluminum last year.
But Trump’s decision also preserved a truce declared last year with European Commission President Jean-Claude Juncker in which both sides agreed to cease trade hostilities while efforts continued to resolve the trade dispute.
In response to the metal tariffs, the EU has already imposed stinging duties on American exports like motorcycles, orange juice, whiskey and blue jeans.
“We note that US postpones decision on car tariffs for 180 days,” European Trade Commissioner Cecilia Malmstrom said on Twitter.
