Trump delays decision on auto tariffs for up to 6 months
18, May 2019
Prelims level :
Mains level :
- 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.