European Union officials stated on Monday that they expected US President Donald Trump to delay the imposition of automotive tariffs. Trump is expected to make the official announcement this week.
The US' plan to impose tariffs on cars and auto parts imported from the European Union is expected to be delayed to at least another six months, EU officials stated. Trump already delayed the imposition of the tariffs by six months back in May. An announcement of another delay will be welcomed news for global automakers. A delay would relieve some pressure on their bottom lines, which is already taking a pummeling from slower demand and the global economic slowdown.
The claims made by the EU officials are reportedly based on "solid indications" from the Trump administration and its intentions regarding its planned tariffs. Officials may have been partly referring to the statements made by US Commerce Secretary Wilbur Ross last week.
Ross, who is overseeing an investigation into the effects of auto imports on the US economy and national security, mentioned that the country likely doesn't need to impose any tariffs on auto imports following "good conversations" with automakers from the EU, South Korea, and Japan.
US Trade Representative Robert Lighthizer and EU Trade Commissioner Cecilia Malmstrom have reportedly been speaking to each other on numerous occasions in recent weeks. Inside sources have revealed that the conversations have been "positive," which is further indication that the US could delay its imposition of auto tariffs. Both officials have yet to meet in-person to discuss the issue and have reportedly only been conversing over the phone.
A European diplomat had also stated that they firmly believe that the US will likely hold off its planned tariffs for now. However, the US will likely dangle the threat over the EU as leverage for upcoming trade negotiations.
If Trump does have plans to announce the delay of the imposition of auto tariffs, he has until Thursday to make an announcement. Thursday is the deadline set by the administration for the imposition of "Section 232" national security tariffs, which will essentially add as much as 25 percent in levies on all imported vehicles from the EU.
Some reports have speculated that Trump could be announcing the moving of the tariff deadline on Tuesday during his speech at the Economic Club of New York. Although these speculations currently have no basis as the official word from the White House has been that Trump will mainly be talking about his tax and trade policies during his speech.
