What Happened: U.S. President Donald Trump issued an executive order on May 17 to delay a 25 percent tariff on auto imports from Japan and the European Union for 180 days while the United States is negotiating a trade deal with each.
Why It Matters: The executive order notably did not include demands on Japan and the European Union to "limit or restrict" auto exports to the United States after initial reports suggested that might be part of the executive order.
Background: Japan and the European Union have agreed to enter trade talks with the United States to avert potential auto tariffs. But though Tokyo and Washington have met several times, they have made no clear progress toward a deal.
Read More:
- Agriculture Is Still Vital to U.S. Trade Talks — For Now (May 2, 2018)
- Japan, U.S.: Industrial Giants Take the Slow Road to a Trade Deal (April 12, 2018)
- Japan Drafts a Delicate Approach to U.S. Trade Talks (Feb. 11, 2019)
