Trump delays decision on auto tariffs for up to 6 months

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  • US President Donald Trump will delay by six months a decision on imposing steep tariffs on imported autos.
  • The decision marks an attempt by Washington to increase pressure ahead of negotiations with the European Union.

BACKGROUND:

  • Mr Trump has directed US Trade Representative Robert Lighthizer to him within 180 days on the outcome of negotiations with the EU, Japan and other countries.
  • Trump had been facing a Saturday deadline to announce whether to implement 25 per cent punitive duties on autos.
  • In response to the metal tariffs, the EU, Canada and Mexico have already imposed stinging duties on American exports like motorcycles, orange juice, whiskey and blue jeans.
  • Meanwhile, European Union is prepared to negotiate with US a limited trade agreement including cars.
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