President Trump has delayed a decision on imposing auto tariffs on car imports, backing away from further increasing trade tensions amid stalled negotiations with China.
A White House proclamation issued on Friday gives him another 180 days to make a decision.
It says Trump directed his trade team, led by Robert Lighthizer, to pursue talks and examine the impact of imports on the domestic auto industry and its ability to invest in research and development.
Sarah Sanders, White House press secretary, said: “United States defense and military superiority depend on the competitiveness of our automobile industry and the research and development that industry generates.”
In particular, the proclamation points out that domestic production has declined from 67% of units sold in the U.S. in 1985 to 22% in 2017 and warns of national security implications if American companies lack the resources to innovate.
“In light of all of these factors, domestic conditions of competition must be improved by reducing imports,” it says. “American-owned producers must be able to increase R&D expenditures to ensure technological leadership that can meet national defense requirements.”
The US auto industry has previously expressed concern about more tariffs, saying they would increase costs for consumers.
The Trump administration has already imposed tariffs on imports of steel and aluminum as well as some $250 billion of Chinese imports.
[Related: Auto tariffs would cost up to 367,000 jobs, research group says]
