White House economic adviser Larry Kudlow said on Friday a U.S. decision to impose “Section 232” national security tariffs on cars and auto parts imported from the European Union is on pause amid attempts to reach a U.S.-EU trade deal.
“I think that whole discussion is on hold for the moment while we work through a good-faith effort with respect to the possibility of an EU trade deal,” Kudlow said in an interview with Bloomberg TV.
The Trump administration launched its Section 232 probe of foreign autos in May 2018. An administration study concluded that some imported vehicles and components are “weakening our internal economy” and could harm national security.
But the administration missed a deadline established by a U.S. law to take action in November.