On May 17, 2019, the White House issued a proclamation delaying the immediate institution of special additional tariffs on the imports of automobiles and automobile parts into the U.S. In the proclamation, President Donald Trump stated that he would:
“[D]irect the United States Trade Representative (Trade Representative) to pursue negotiation of agreements contemplated…to address the threatened impairment of the national security with respect to imported automobiles and certain automobile parts from the European Union, Japan, and any other country the Trade Representative deems appropriate, and to update me on the progress of such negotiations within 180 days. Under current circumstances, this action is necessary and appropriate to remove the threatened impairment of the national security.” (emphasis added)
This comes 90 days after the U.S. Department of Commerce submitted its report to the President back in February. To see our full post on the matter, click here. The initial deadline for the President to decide whether or not to impose the potential 232 auto tariffs was scheduled for May 18, 2019, however with this recent proclamation, the decision may be delayed up to 6 months.
We will continue to monitor this situation. For more information on the Section 232 tariffs on automobiles, please contact our International Trade and Supply Chain Group – Nithya Nagarajan, Cortney Morgan, Jeffrey Neeley, Robert Stang, or Beau Jackson.