US President Donald Trump is considering a temporary suspension of the auto tariffs he imposed on the sector to allow carmakers time to realign their supply chain."I am looking at something to help some of the car companies with it," Trump said at the media briefing at the Oval Office.
Trump explained that carmakers need time to move production out of Canada, Mexico and other areas, and said, "And they (the car manufacturers) need a little bit of time because they are going to make them here, but they need a little bit of time. So I'm talking about something like that," according to AP.
This claim by the Republican leader was a signal of potential rollback of the tariffs, which had shaken financial markets worldwide and sent shivers over the possibility of a recession. Trump's previous action in imposing a 25% tariff on the automobile sector on March 27 was not to be short-lived. This was followed on April 2 by him announcing retaliatory tariffs between 10% and 50% on all America's trading partners. However, after a sell-off in the bond market pushed interest rates on US debt upward, Trump put a 90-day moratorium and instituted a baseline 10% tariff on a number of countries to create space for negotiations.
Apart from it all, Trump is also confronting some legal warfare. The public interest law center known as Liberty Justice Center instituted a lawsuit for and on behalf of five tiny American businesses in the attempt to stall the president's blanket tariffs upon America's partners in commerce. The case asserts that the actions of Trump overstepped what he has in authority and oppose both the April 2 retaliatory tariffs described by Trump as "Liberation Day," as well as the other supplemental tariffs placed upon China, claims Reuters.
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