Leah Yecla – Fourth Estate Contributor
Washington D.C., United States (4E) – President Trump will anounce on Saturday the deferal of 25 percent auto tariff for cars and car parts to up to six months paving the way to win concessions with EU and Japan, reports from anonymous sources hinted.
Reports surfaced on Wednesday about the US President’s plan to defer the 25 percent tariff imposition on imported cars and car parts.
The decision to delay the implementation of the auto tariff is due on Saturday, May 18 when the president is also expected to officially announce the six months extension before the implementation of the 25% excise on imported cars and car parts takes place. Sources say that the White House is currently preparing the draft for the official announcement.
The decision comes following a series of meeting held by the White House and other administration officials. General Motor’s $700 million investment in Ohio plants is another factor contributing to Trump’s decision to delay the auto tariff. Automakers such as Toyota Motor Corp and Volkswagen hinted the red flag should the 25 percent auto tariff succeed soon.
Days before Trump’s decision to delay the auto tariff, Terri Sewell, Ways and Means Committee Vice Chair headed 159 members of the House of Representatives to write Larry Kudlow, White House National Economic Council Director a letter to convince the President to avoid trade restrictions as it could harm the American economy including the auto sector.
The move to delay the 25 percent auto tariff comes in the midst of the heat of US trade war with China raising the tariff on the country’s $200 billion worth of goods from 10 percent to 25 percent. China retaliated and announced that it would also increase tariffs on $60 billion worth of goods from the US.
Reports on the delay of auto tariff resulted in an unexpected increase in auto stocks. General Motors gained a 1.4 percent share increase while Ford’s shares escalated to 1.6 percent.
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