Trump to Delay Tariffs on Foreign Cars
As the Hill reports:
President Trump will likely hold off on imposing tariffs on imported automobiles for at least six months as trade talks continue with the European Union and Japan, according to multiple media reports.
Trump is expected to delay a May 18 deadline to decide whether to apply tariffs of up to 25 percent on foreign autos, Bloomberg and CNBC reported Wednesday, easing concerns about potential retaliation from crucial U.S. trading partners.
If Trump imposes tariffs on foreign autos, it would be considered a major escalation of his protectionist trade policy. Economists have warned that import taxes on foreign cars could severely hinder the U.S. and global economies.
The reports of Trump’s delay helped reassure financial markets already rattled by rising trade tensions between the U.S. and China. The Dow Jones Industrial Average rebounded from a nearly 200 point drop to a 120-point gain on the news, while shares of U.S. auto companies also rose.”
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