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.

Days after the Trump administration made good on their promise to raise Section 301 tariffs on Chinese imports, China's State Council Customs Tariff Commission announced new tariffs on $60 billion worth of U.S. goods. China's latest tariffs on 5,140 products will take effect on June 1, adding up to 25% to the cost of U.S. goods that are covered by the new policy.

China’s latest counter-strike was expected after the U.S. raised Section 301 tariffs on May 10. Speaking about the likelihood that China would retaliate with their own set of tariffs, President Trump's top economic adviser Larry Kudlow said, "I reckon they will. We'll see what they come up with."

President Donald Trump has threatened to escalate tariffs on Chinese goods from 10 percent to 25 percent in a series of tweets Sunday, May 5 and Monday, May 6. In response, the value of the yuan and crude oil fell, and the Dow Jones Industrial Average plunged 450 points triggered by a global selloff.

“Risks of a full-blown trade war are escalating,” said Chua Hak Bin, a senior economist at Maybank Kim Eng Research in Singapore. “Trump’s threat may backfire as China will not want to negotiate with a gun pointing at their heads.”