Auto Tariffs Off the Table for 180 Days, Trump Claims

Steph Willems
by Steph Willems

U.S. President Donald Trump pushed the threat of tariffs on imported vehicles to the background on Friday, announcing a 180-day pause as the country negotiates trade agreements with Japan and the European Union.

The delay comes a day ahead of a Saturday deadline imposed by the Commerce Department. In February, the department delivered the findings of an investigation on whether auto imports represent a national security threat to the United States. The report, not seen by the public, issued recommendations to the White House.

Trump has long used the threat of import tariffs to bring trading partners to the table, especially the EU. The region fired back with threats of its own. With negotiations underway, Trump is allowed to push back the decision to impose tariffs by six months, though he can still choose to impose them at any time.

The president said Friday that he directed U.S. Trade Representative Robert Lighthizer to secure agreements “to address the threatened impairment” of national security by incoming foreign vehicles.

“United States defense and military superiority depend on the competitiveness of our automobile industry and the research and development that industry generates,” said White House press secretary Sarah Huckabee Sanders in a statement reported by CNBC. “The negotiation process will be led by United States Trade Representative Robert Lighthizer and, if agreements are not reached within 180 days, the President will determine whether and what further action needs to be taken.”

Trump said his aim is to improve the “domestic conditions of competition” by reducing imports. Ideally, he’d love to see every vehicle sold in the U.S. built in the U.S., though that dream scenario isn’t in the cards.

Numerous automakers have come out against the idea of import tariffs, among them General Motors, Toyota, and Volkswagen. Each warns of higher consumer prices if such a move comes to pass.

As the country’s trade focus turns to automobiles, food and clothing companies warn that last week’s raising of tariffs on $200 billion in Chinese goods (from 10 percent to 25 percent) also stands to hit American consumers in the wallet. As reported by Reuters, Del Monte, Walmart, and Macy’s have publicly stated that the tariffs will have an impact on their business, suggesting the added costs could be passed on to consumers.

[Image: BMW]

Steph Willems
Steph Willems

More by Steph Willems

Comments
Join the conversation
3 of 32 comments
  • Dartdude The bottom line is that in the new America coming the elites don't want you and me to own cars. They are going to make building cars so expensive that the will only be for the very rich and connected. You will eat bugs and ride the bus and live in a 500sq-ft. apartment and like it. HUD wants to quit giving federal for any development for single family homes and don't be surprised that FHA aren't going to give loans for single family homes in the very near future.
  • FreedMike This is before Cadillac styling went full scale nutty...and not particularly attractive, in my opinion.
  • JTiberius1701 Middle of April here in NE Ohio. And that can still be shaky. Also on my Fiesta ST, I use Michelin Pilot Sport A/S tires for the winter and Bridgestone Potenza for my summer tires. No issues at all.
  • TCowner We've had a 64.5 Mustang in the family for the past 40 years. It is all original, Rangoon Red coupe with 289 (one of the first instead of the 260), Rally Pac, 4-speed, factory air, every option. Always gets smiles and thumbs ups.
  • ToolGuy This might be a good option for my spouse when it becomes available -- thought about reserving one but the $500 deposit is a little too serious. Oh sorry, that was the Volvo EX30, not the Mustang. Is Volvo part of Ford? Is the Mustang an EV? I'm so confused.
Next