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President Trump faces a May 18 deadline on whether to proceed with threatend tariffs of up to 25 percent on European made cars and parts. In February, the Commerce Department submitted a report to Trump saying he could justify auto tariffs based on national security concerns.
The delay could potentially ease trade tensions between China and the United States as Treasury Secretary Steven Mnuchin told lawmakers that trade talks will likely continue in Beijing.
Automakers have warned a 25 percent tariffs would backfire, driving up the cost to U.S. consumers and resulting in job loss for the auto industry.
Subaru of America CEO Tom Doll told FOX Business’ Neil Cavuto that the current tariffs have had a major impact on the company's suppliers.
“We buy all of our steel locally in the United States, but the ripple effect that is coming in from the suppliers is really starting to have an impact, particularly on our margins,” Doll said in March.
The Trump administration is expected to delay its decision for up to six months.