Trump Reportedly to Put Off Action on Section 232 Auto Investigation; Deadline Remains Fluid

The Trump administration will wait at least another six months before taking action in response to the Commerce Department's Section 232 investigation into automobiles and auto tariffs, CNBC and other outlets reported May 15. The administration plans to make use of the Section 232 provisions that allow for an 180-day delay while negotiations continue, CNBC said. It remains unclear whether the White House will detail its planned response to the investigation when it announces the delay.

Tariffs are generally seen as the most likely result, though other options, such as quotas, remain a possibility. A 180-day delay would push the decision to Nov. 14, but, as an economist at the Peterson Institute for International Economics recently described (see 1904260023), there seem to be ways around the deadline. Asked about the new timeline, PIIE economist Jeremie Cohen-Setton said by email that "my understanding is that the administration still retains a lot of discretion to push back the final decision date if it wants to." While the Section 232 language seems to be "constraining," the president is only required to give a rationale in the Federal Register for any decision and there's "no restriction on what that decision might be," Cohen-Setton said.

The Alliance of Automobile Manufacturers reiterated its position against the tariffs in a news release. BritishAmerican Business voiced support for the delay in a news release. "On behalf of the transatlantic business community, we support that the White House uses this very moment to pave the way for a continuation of constructive trade talks with major trading partners," the group said. The White House didn't comment.