White House economic adviser Larry Kudlow said that a decision concerning tariffs on autos and auto parts imports from the European Union would be delayed to consider some “new proposals” from the administration’s EU counterparts.
“I think that whole discussion is on hold for the moment while we work through a good-faith effort with respect to the possibility of an EU trade deal,” Kudlow said in an appearance on Bloomberg TV. Kudlow did not elaborate on the proposals or give a time frame for when the administration would make a decision.
The EU Trade Commissioner Phil Hogan was in Washington this week to meet U.S. Trade Representative Robert Lighthizer. No announcements were made, but Kudlow called them “good talks” and said there was a “new energy to the talks.”
President Trump has periodically threatened to impose 25% tariffs on autos and auto parts imports under Section 232 of the Trade Enforcement Act, which allows tariffs for national security reasons. Last year, the Commerce Department produced a study arguing for the tariffs, but the White House held off implementing them while U.S.-EU talks were possible.
The tariffs would be a heavy blow to the EU auto industry. The administration’s deadline for imposing the tariff threat technically lapsed last year, but Commerce Secretary Wilbur Ross has argued that the administration still has the legal authority to impose them. Trump has recently renewed the threat to enact them if a deal isn’t reached.
