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Thread: Trump administration to delay auto tariffs by up to six months: Sources

  1. #1

    Trump administration to delay auto tariffs by up to six months: Sources

    https://www.cnbc.com/2019/05/15/trum...trade-war.html

    Auto parts and foreign cars, apparently, are a matter of national security. But even the US auto industry- who would in theory be protected by the move- is opposed to the idea of the tariffs.

    The Trump administration plans to delay auto tariffs by up to six months, stopping itself for now from widening global trade disputes, four sources told CNBC.

    The White House faces a Saturday deadline to decide whether to slap duties on car and auto part imports over national security concerns. After Saturday, the administration would have another 180 days to come to a decision as long as it is negotiating with its counterparts.

    President Donald Trump sees the tariffs as a way to gain leverage over trading partners such as the European Union and Japan during ongoing talks. But the president risks sparking fresh global trade clashes if he goes through with car duties. The European Union, for example, has already prepared a list of retaliatory duties to implement if Trump targets autos.

    Stocks gained back their their losses Wednesday following news of the administration’s plans, which were confirmed by a source briefed on the talks, an administration official and two foreign officials. Shares of automakers such as Ford and General Motors jumped.

    The delay comes as the White House tries to strike a potential trade deal with China to end an escalating conflict. The world’s two largest economies increased tariffs on one another in recent days, amplifying a fight that has rattled financial markets and threatened to drag on the global economy.

    Trump is mulling whether to use a national security justification to slap tariffs as high as 25% on cars. In February, the Commerce Department delivered a report to the president saying that he could justify duties citing a national security threat. He also used the rationale to put tariffs on steel and aluminum imports.

    Lawmakers from both major parties have pushed Trump not to move forward with the auto duties. Republicans and Democrats on Capitol Hill have previously criticized the national security grounds used to imposing duties on goods from allies such as Canada.

    U.S. automakers have also opposed the potential tariffs. When the Commerce Department gave Trump its report in February, the industry group Alliance of Automobile Manufacturers said “imposing tariffs on imported vehicles and parts would be a mistake, with significant negative consequences” for the auto industry and its employees.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.



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  3. #2
    Quote Originally Posted by Zippyjuan View Post
    https://www.cnbc.com/2019/05/15/trum...trade-war.html

    Auto parts and foreign cars, apparently, are a matter of national security. But even the US auto industry- who would in theory be protected by the move- is opposed to the idea of the tariffs.
    The industry is global, and every major player has factories both in and out of the U.S. It'll take at least six months for everyone to figure out what has enough parts made here and subassemblies done there to be subject to which tariffs.
    Quote Originally Posted by angelatc View Post
    There's not a liberty lover on the planet who isn't called a liberal by the right, and a con by the left.
    Quote Originally Posted by Swordsmyth View Post
    I don't really care if I happen to be wrong about your positions, you are wrong about mine.

  4. #3
    Quote Originally Posted by acptulsa View Post
    The industry is global, and every major player has factories both in and out of the U.S. It'll take at least six months for everyone to figure out what has enough parts made here and subassemblies done there to be subject to which tariffs.
    It is so global that even part of one part is made in one country and sent to another country who does something else to it, then it goes to another country.. it could be in the US three or four times before it is ready to be installed in a car.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.

  5. #4
    Quote Originally Posted by Zippyjuan View Post
    It is so global that even part of one part is made in one country and sent to another country who does something else to it, then it goes to another country.. it could be in the US three or four times before it is ready to be installed in a car.
    Arguably the most American car Ford made twenty years ago was the Crown Victoria. But it was purposely given enough foreign content (and built in Canada) to qualify it as an import. This took it out of their domestic CAFE rating equations, and put it in their import CAFE ratings--with the Festiva.
    Quote Originally Posted by angelatc View Post
    There's not a liberty lover on the planet who isn't called a liberal by the right, and a con by the left.
    Quote Originally Posted by Swordsmyth View Post
    I don't really care if I happen to be wrong about your positions, you are wrong about mine.



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