Auto tariffs on cars built in China have been put on hold, according to a Tuesday Bloomberg report. The Trump administration has reportedly hold off on imposing the tariffs after a meeting with officials this week.
Sources told the publication the Trump administration isn’t ready to act on tariffs yet, but they’re not completely off the table. President Trump said he would not impose tariffs on Europe as the European Union and United States work on a new trade deal. Both Canada and Mexico also won’t face tariffs as part of side agreements to the newly hashed-out U.S.-Mexico-Canada Agreement (USMCA), which will replace NAFTA when ratified in 2019.
The administration first began to look into auto tariffs this past May as a national security threat.
Notably, General Motors could be hit with a 25 percent tariff on vehicles it builds in China and sells in the U.S. The Buick Envision would be the only vehicle subject to such a tariff. Cadillac announced the CT6 Plug-In, also built in China and imported to the U.S., will not return for the 2019 model year.
On average, such tariffs could potentially add $2,270 to the cost of U.S.-built cars and $6,875 to the cost of imported cars and trucks, analysts said. Automakers have urged the Trump administration not to impose such tariffs.
GM itself requested an exemption from the tariffs for the Envision earlier this year. Volvo, which builds many of its cars in China, requested a similar exemption.
Nothing is a done deal, however. After reviewing the an initial draft of the report, President Trump and Commerce Secretary Wilbur Ross noted the report is still subject to changes, per the sources. After he receives the final report, the president will have 90 days to determine if auto imports are a national security threat and to impose tariffs.