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Trump likely to delay auto tariff decision by up to 6 months: report

All Headlines 00:36 May 16, 2019

WASHINGTON, May 15 (Yonhap) -- U.S. President Donald Trump is likely to delay a decision on tariffs on imported cars and parts by up to six months, Reuters reported Wednesday.

Trump was expected to decide by Saturday whether to impose up to 25 percent tariffs on cars imported from countries including South Korea.

His administration has drafted language on delaying the decision and is expected to make a formal announcement by Saturday, Reuters said, citing three administration officials.

It added that automakers expected a delay amid ongoing talks between the U.S. and the European Union and Japan.

South Korea has been pushing to gain an exemption from the potential tariffs on the grounds that it made concessions on autos in the revised bilateral free trade agreement with the U.S., which took effect in January.

Industry officials say that Korean car companies, which make mostly small and medium-sized cars, are not in direct competition with the big three American automakers that focus more on SUVs, pickup trucks and large sedans.

In April, Moody's Investors Service said the potential tariffs would drag down South Korea's economic growth this year by 0.3 percentage point.

Trump likely to delay auto tariff decision by up to 6 months: report - 1


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