Trump took no action last Thursday as a deadline to impose the national security tariffs of up to 25% on automotive imports from the European Union, Japan or South Korea expired.
Automakers had expected another delay in Trump’s tariff decision as his administration pursues broader trade negotiations with the European Union and Japan.
In May, Trump invoked a six-month negotiating period under Section 232 of the Trade Expansion Act of 1962, a law aimed at protecting the U.S. Cold War-era defense industrial base. He has hailed the threat of tariffs as a strong negotiating tool to gain leverage over his opponents.
But an initial trade deal with Japan reached in September did not address autos trade, while talks with the EU have not formally started as the two sides remain at odds over the scope of the negotiations.