The Trump administration will reportedly hold off on enforcing new tariffs on automobile imports, Bloomberg reports.
On Tuesday, President Donald Trump met with a number of top trade advisers to discuss a report on a Commerce Department investigation into the impact of car imports in the country’s national security.
Individuals close to the discussions, who spoke on the condition of anonymity, say the report will be subject to further changes and that the administration isn’t yet ready to act on potential new tariffs.
Commerce Secretary Wilbur Ross is heading up the probe and has until February to deliver his findings to President Trump. The probe covers the imports of automobiles, including SUVs, vans, light trucks, and auto parts.
The President has the final say on whether new tariffs will be imposed, and has previously threatened tariffs of up to 25 per cent on foreign-made vehicles.
If the Commerce Department concludes that auto imports represent a national security risk, then Trump will have 90 days after receiving the report to decide whether to impose tariffs or not.
In the months since he made his initial threats, the President has agreed not to impose auto tariffs on Europe as the two iron out a trade deal.
Carmakers have spoken out about the harm tariffs could do to the U.S. economy and the global automobile industry. The National Automobile Dealers Association predicts the cost of U.S.-built cars to rise by $2270 due to additional tariffs while the average cost of imported cars and trucks could soar by $6875.