President Trump will likely delay his decision on slapping tariffs on imported cars and parts by up to six months, avoiding opening yet another front in his global trade battles with China.
A formal announcement is expected by Saturday, the due date for Trump to make a decision on recommendations by the Commerce Department to protect the US auto industry from imports on national-security grounds, three administration officials told Reuters.
Automakers had expected Trump to delay the decision as trade negotiations get underway with the European Union and Japan. General Motors, Volkswagen, Toyota and others have warned of the damaging impacts of imposing tariffs of up to 25 percent on cars and parts.
“The case remains clear — cars are not a national security threat,” the Alliance of Automobile Manufacturers, an industry trade group, said.
It said imposing tariffs on autos and auto parts would cost as many as 700,000 American jobs.