On Tuesday night, US president Donald Trump made clear his plans on the European Union situation. He said that the US will push through with their plans to put a 25 percent tariff on imports coming from Europe. This came after Commerce Secretary Wilbur Ross stepped back from plans to put out a report on vehicle tariffs in time for August.
CNBC said that Trump, pressed for clarification on these tariffs, said that 20 to 25 percent of extra duty may be slapped on the auto imports. He also tasked the Commerce Department with the role of examiner, to see whether these imports will undermine the US' interests. Commerce Secretary Wilbur Ross, meanwhile, said that it would be difficult, seeing that manufacturers are already up in arms against these tariffs.
Ross also cleared the issue about coming up with a report on the impending tariffs. Instead of coming out with a report on the European import issue, the Commerce secretary instead chose to create a new timeline. He cited discussions with the European Commission and border neighbors Canada and Mexico as the reasons behind this.
He also said that investigations will continue on the soundness of these plans. Ross still plans on completing his studies and will base recommendations depending on how discussions with the EU as well as Canada and Mexico goes. He said he aims to complete the report 'sometime in August,' by which time the government can issue the tariffs as they see fit.
Some manufacturers have seen this as a positive. Administration officials have come forth and said that there are agreements waiting to be negotiated, especially with these car makers in question. The auto industry, long waiting for results and pressed to find out what actions they will take, have lauded these developments, WSJ reports.
With the number of car manufacturers that are reeling from the backlash, however, Ross said it was impossible to complete the study even in time by the end of August. With the statements that Trump has made against European Union imports flooding the market, it remains to be seen how the Commerce Department plans to finish their study, and if Trump will still have the patience to wait for it.
