Mere hours before temporary exemptions for certain U.S. allies were set to expire, the Trump administration Monday postponed new, wide-reaching import tariffs on aluminum and steel used in new cars.
The temporary tariff exemptions were set to expire at 12:01 a.m. Tuesday. At that time, the government planned to begin charging a 10 percent tariff on imported aluminum and a 25 percent tariff on imported steel.
Higher import duties could increase the cost of new cars in the U.S. Much of the steel and aluminum used to build cars here is imported from Canada.
The White House said in a statement Tuesday that it is "extending negotiations with Canada, Mexico, and the European Union for a final 30 days. In all of these negotiations, the administration is focused on quotas that will restrain imports, prevent transshipment, and protect the national security."
Additionally, the administration said that it is finalizing permanent exemption trade deals with Argentina, Australia, and Brazil. Details about those agreements have not been announced.
Countries without specific exemptions will be subject to the 10 and 25 percent tariffs after June 1, President Trump said in March when he first announced the broad measures. After June 1, the administration says it plans to stop granting exemptions. Countries in Europe have promised retaliation if the tariffs are enforced and said they would tax goods imported from the U.S. including motorcycles, orange juice, and blue jeans.