President Donald Trump plans to hold off on imposing steep tariffs on imported autos while the US pursues agreements with key trading partners, industry sources told AFP Wednesday.
Trump has threatened to impose 25 percent punitive duties on autos — a possibility that has worried the European Union and Japan in particular, as well as Mexico and Canada.
Facing a deadline to announce a decision by Saturday on whether to implement the tariffs based on national security concerns, the sources said Trump would hold off as negotiations proceed.
New tariffs risk exploding already tense trade relations with Washington’s major trading partners, who are angry about punitive duties on steel and aluminum imposed last year.
CNBC and other media earlier Wednesday cited government sources also saying that Trump was expected to try negotiations before imposing any new import taxes.
German carmakers are especially concerned about the tariff threat, but Trump and European Commission President Jean-Claude Juncker declared a truce in July 2018 in order to pursue negotiations.
EU officials have repeatedly said they expect the US to abide by the agreement to hold off on any new tariffs.
Under US law, Trump must make a decision 90 days after receiving the report from the Commerce Department on the national security threat faced by the American auto sector — or Saturday.
If he decides to impose tariffs, they must take effect 15 days after the announcement.
However, he can delay implementation for 180 days if he decides to negotiate.
The White House currently is negotiating trade deals with the EU and Japan, and late last year completed a revised accord with North American trading partners Mexico and Canada.
Democrats are on the verge of setting a ‘time bomb’ for any candidate who can defeat Trump
If a new president takes over the White House in January 2021, he or she may quickly find that the Democratic Party that just won control of the executive branch left a loaded gun in the hands of the Republicans, who are all too eager to use it.
That should be the takeaway from reports about the budget negotiations between the House Democrats and the Trump administration. According to Bloomberg reporter Sahil Kapur, the parties are coalescing around an agreement to raise spending by $350 billion, offset that increase somewhat with about $75 billion, and extend the debt ceiling — now set to expire in the fall — to July 31, 2021.
State Sen. Royce West enters Democratic primary to challenge John Cornyn
“I’m battle tested,” West told supporters at a campaign launch event. “You’ve seen me in battle, and I’m ready today to announce my candidacy for the United States Senate.”
The Dallas attorney has been viewed as a potential primary contender for some time now, but he remained mum publicly on his plans. In June, West met with U.S. Senate Minority Leader Chuck Schumer, D-N.Y., where he reportedly had a “positive meeting” and signaled that he was likely to throw his hat in the ring. He filed the Federal Election Commission paperwork to formally launch his bid Friday.
Former NASA flight director Chris Kraft dies at 95
NASA's first flight director Chris Kraft, who played a critical role in the American space race, has died just days after 50th anniversary celebrations for the first Moon landing, the agency said.
The 95-year-old joined NASA in 1958 and developed the planning and control processes needed for crewed space missions, creating the agency's Mission Control operations that were used to manage the first US manned spaceflight and the Apollo missions to the Moon.
"America has truly lost a national treasure today with the passing of one of NASA's earliest pioneers," said agency chief Jim Bridenstine in a statement announcing Kraft's death on Monday.