The President of the United States, Donald Trump, is expected to postpone his decision on the imposition of tariffs on cars imported from the European Union (EU) and Japan for up to six months.

The Trump administration  is set to formally announce a due date for Trump to make a decision on the automotive tariff increases in concurrence with the recommendations by the U.S. Commerce Department on Saturday, May 18.  Automakers reportedly anticipate that the decision will be postponed while negotiations with the European Union and Japan continue.

The Alliance of Automobile Manufacturers that represents GM, VW, Toyota, and other automaker producers said in a statement: “We are deeply concerned that the administration continues to consider imposing auto tariffs,” both for the industry and for its workers. The industry says tariffs of up to 25 percent on millions of imported cars and parts would add thousands of dollars to vehicle costs and potentially lead to hundreds of thousands of job losses throughout the U.S. economy.

In preparation for the possibility that President Trump announces plans to impose additional automotive tariffs this weekend, the EU has announced that it has drawn up a list of American goods to target in the event that their automotive exports are threatened.  The list would affect 20 billion euros ($22.5 billion) of U.S. goods.

Bloomberg reports that EU trade chief Cecilia Malmstrom says, “We are already preparing a list of possible items. The moment this is official -- if this happens, I still hope it won’t -- then we would publish that list,” she said, adding that it would “happen quite rapidly.’

The European Commission has calculated that a U.S. tariff of 25 percent on EU car imports would add approximately 10,000 euros to the sticker price of European cars in the United States.

If you want to learn more about these potential automotive tariffs, visit Reuters and Bloomberg for the latest update.

 

-- UPDATE -- Since this post was published, the Trump administration announced that it will delay tariffs on cars and auto parts imports for six months while it negotiates trade deals with Japan and the European Union.