Trump Says Decision on Delaying Auto Tariffs Again Will Come 'Very Soon'
President Donald Trump told a Wall Street Journal White House reporter that he's been fully briefed by the U.S. trade representative on the issue of auto tariffs, and said he will make a decision very soon on whether he will delay imposing tariffs on imported cars and car parts.
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Back in May, the president instructed the U.S. trade representative to negotiate with Japan and the European Union to mitigate the threat to national security represented by the shrinking market share for automakers Ford and General Motors. The Section 232 investigation into the threat of auto imports made no distinction between foreign automakers' production in the U.S. and imports. It said that innovations in electrification, making vehicles lighter, engines and powertrains, autonomous driving and “advanced connectivity" in the auto sector "are essential to maintaining our military superiority," and that without adequate revenue, Ford and GM cannot innovate in those ways.
In May, Trump did not say what level of tariffs would be needed to protect Ford and GM, but said that USTR was to report back in 180 days (see 1905170001). Japan reached a trade deal with the U.S. during that time period, but there has been no progress with the European Union. Still, signs from both European officials and Commerce Secretary Wilbur Ross suggest that Trump will not impose tariffs on European auto exports.