The pause button may have been pressed on US president Donald Trump’s threat to impose 25% tariffs on foreign made vehicles.
Sources told Bloomberg that the White House is assessing revisions of a report on the issue, which include how tariffs would affect “national security implications”.
The report, commissioned by the Commerce Department, covers imports of automobiles, including SUVs, vans and light trucks, as well as auto parts.
Commerce Secretary Wilbur Ross has until February to deliver his findings to the president.
The National Automobile Dealers Association estimates tariffs could add US$2270 to the cost of U.S.-built cars and US$6875 to the cost of imported cars and trucks.
The European Union may be partially exempt from the tariffs thanks to ongoing trade negotiations.
Canada and Mexico also recently negotiated limited tariff exemptions on vehicles as part of the new US-Mexico-Canada Agreement.
