Pittsburgh Post-Gazette

Auto tariffs put in park

Will the delay bring Europe or Japan to the table?

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Delaying imposing tariffs on foreign imports of cars and automotive parts for six months was a good move by the Trump administra­tion.

Amid a trade battle with China, President Donald Trump rightly decided last week not to implement the auto tariffs until at least mid-November. It came just as he worked out new steel and aluminum trade agreements with Canada and Mexico, easing tensions with our two neighbors.

U.S. auto industry executives have not requested tariffs on foreign imports, but Mr. Trump maintains those imports from Europe and Japan in particular pose a threat to national security. They certainly pose a threat to economic security for many Americans.

If imposed, it is expected that the tax would apply to automotive parts as well as vehicles.

General Motors, Ford and Fiat Chrysler all import vehicles sold in the United States and use many foreign-made parts in their vehicles made domestical­ly, so tariffs would affect their products as well as imports made by Toyota, Nissan, Honda, Kia, Hyundai, Volkswagen, BMW, Mercedes and others.

At stake are big numbers. The United States last year allowed

$192 billion worth of passenger vehicles and $159 billion in automotive parts to be brought in from abroad.

And, domestic automakers worry that other countries would retaliate if the U.S. imposed auto tariffs, because that would mean an American-made Jeep Wrangler exported to Europe, for example, would become more expensive and less likely to sell to customers there.

Several economists have warned that tariffs would boost the cost of buying a car in the United States, perhaps up to $6,800.

Mr. Trump had already rattled foreign leaders with his stiff levies on steel and aluminum and $250 billion worth of Chinese goods.

His decision to delay the auto tariff’s buy him time.

This delay may help Congress focus on the revised version of the North American Free Trade Agreement with Mexico and Canada that has a key focus on auto industry products.

Mr. Trump will reassess the auto tariffs toward the end of the year when perhaps the upshot of his other trade fights are clearer.

Bottom line, Mr. Trump’s brand of economic nationalis­m works best if it forces trading partners

trading enemies to the table and the art of the deal.

 ?? Martin Meissner/Associated Press ?? President Donald Trump has delayed making a decision to impose tariffs on car and auto-part imports for now.
Martin Meissner/Associated Press President Donald Trump has delayed making a decision to impose tariffs on car and auto-part imports for now.

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