Donald Trump; President of the United States
On May the 18th, the US is set to impose up to 25% tariffs on imported cars and parts from the EU and Japan in the name of US national security, but to avoid disrupting ongoing trade negotiations, he is likely to announce a 6 month postponement to the deadline.
One reason given is that he doesn’t want to antagonise allies as he is ramping up the trade war with China.
“You can’t fight multiple trade battles at the same time. You have to pick who your biggest enemy is,” said one former US trade official.
This has led to a rise in automobile equities both in Europe and the US who source a large amount of auto parts from the EU.
Any new tariffs would hit imported cars from Japan, South Korea and Europe hardest. But they would also hit the supply chains of many domestic producers who rely on imported parts and foreign automakers with manufacturing operations in the U.S.
However, this is just a 180 day postponement, the threat of tariffs remain.
