Trump delays decision on auto tariffs for up to six months
Washington: President Donald Trump on Friday announced a six-month delay in imposing steep tariffs on auto imports, seeking to pressure Europe and Japan into bargaining table concessions on trade.
The decision marked a temporary reprieve from what would have been a sizable escalation in Trump's multi-front trade wars.
Trump's threat targets a major chunk of global economic activity with profound disruptions. Hundreds of billions of dollars in autos are manufactured, shipped and sold internationally every year.
In a proclamation, the president directed US Trade Representative Robert Lighthizer to update him within 180 days on the outcome of negotiations with the EU, Japan and "any other country" Lighthizer deems appropriate.
By leaving the threat of tariffs hanging, Trump's move raises the temperature in European capitals already angered by the imposition of punishing US duties on steel and aluminum last year.
Trump's decision also preserved a truce declared last year with European Commission President Jean-Claude Juncker in which both sides agreed to cease trade hostilities while efforts continued to resolve the trade dispute.
Despite the decision, Trump continued his attacks on EU trade policy. "The European Union treats us, I'd say, worse than China -- they're just smaller," Trump said at an event.
"They don't want our farmers, they don't want our cars... They send Mercedes-Benz here like they're cookies," Trump said, adding that "they take advantage of us on trade." "We all love Europe but it's not fair."
In response to the US metal tariffs, the EU last year imposed stinging duties on American exports like motorcycles, orange juice, whiskey and blue jeans, and threatened to retaliate further should the auto tariffs be imposed.
European Trade Commissioner Cecilia Malmstrom confirmed an existing offer that "the EU is prepared to negotiate a limited trade agreement including cars." The six-month delay had been expected this week as industry sources confirmed media reports that Trump would hold off -- delighting markets which had feared sharp economic consequences of such a move.
In his proclamation, Trump described the US auto sector as facing decline due to unfair foreign competition.
A report by Commerce Secretary Wilbur Ross concluded that America's shrinking share of the auto market jeopardized its research, development and manufacturing -- all "vital to national security," according to Trump.
In a conclusion likely to invite challenges from manufacturers and industry analysts, Trump said America's defense industrial base relied on the domestic auto sector for technological advances essential to US "military superiority."
Citing Ross's conclusions, Trump pointed to a doubling of US imports over the last 34 years but accused Europe and Japan of raising "significant barriers" to accepting American exports in return.
In that same period, the domestic market share of American-owned manufacturers fell to just 22 percent from 67 percent, he said.
"In light of all of these factors, domestic conditions of competition must be improved by reducing imports," Trump said.
Reacting to the announcement, Dieter Kempf, head of the German industrial federation, said "cars do not threaten the national security of the United States." Japanese automaker Toyota, which has factories and research centers in the United States also strongly rejected the notion.
"Today's proclamation sends a message to Toyota that our investments are not welcomed, and the contributions from each of our employees across America are not valued," a statement read.
"If import quotas are imposed, the biggest losers will be consumers who will pay more and have fewer vehicle choices." Charlie Chesbrough, senior economist at Cox Automotive, said that by jacking up tariffs on 200 billion worth of Chinese merchandise last week Trump had shown Brussels his tariff threats were not idle.
"I think it's a signal to everybody that he means business," Chesbrough told AFP.
"I think in general it's a good news story in that it buys the industry a little more time to try to get the president to change his mind about the tariffs." The United States imported almost 200 billion worth of autos in 2017, according to the proclamation.
But, while foreign-branded cars are popular in the United States, many automakers have championed their US-based manufacturing operations in places like Alabama, Kentucky and South Carolina.
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US soldiers were killed in Iranian drone strike on operations centre at Kuwait civilian port
Washington (AP): An operations centre targeted by an Iranian drone strike that killed six American soldiers on Sunday was located in the heart of a civilian port in Kuwait, miles away from the main Army base, according to satellite images and a US official.
The husband of one of the slain soldiers, who was part of a supply and logistics unit based in Iowa, told The Associated Press on Tuesday that the hub was a shipping container-style building and had no defences.
The development, reported earlier by CNN and CBS News, raises questions about the safety precautions that the US military had in place as it, along with Israel, launched an attack on Iran, which has responded with retaliatory strikes against several countries in the region, including Kuwait.
President Donald Trump and top defence leaders say more American casualties are likely.
Defence Secretary Pete Hegseth said Monday that the six soldiers were killed in a “tactical operations centre” when a projectile made its way past air defences. A day later, the Pentagon confirmed it was a drone strike in Port Shuaiba when announcing the names of four of the soldiers who were slain.
A satellite image taken Monday and reviewed by the AP showed the main building in the complex destroyed, with a trail of black smoke rising from it. It is located in the heart of Port Shuaiba, a working seaport and industrial area just south of Kuwait City. The US official, who spoke on condition of anonymity to discuss a matter under active investigation, confirmed the image depicted the location of Sunday's attack.
The Army base, Camp Arifjan, is more than 10 miles to the south. The operations centre was just a little over a mile from some of the piers where merchant ships would offload cargo containers and was surrounded by oil storage tanks, refineries and a power plant.
Joey Amor, husband of Sgt 1st Class Nicole Amor, said his wife was moved off-base to what he described as a shipping container-style building a week before the Iranian strike. The 39-year-old from White Bear Lake, Minnesota, was one of the soldiers killed in the attack.
“They were dispersing because they were in fear that the base they were on was going to get attacked, and they felt it was safer in smaller groups in separated places,” he said.
After news reports about the operations centre emerged, chief Pentagon spokesman Sean Parnell said on social media that the “secure facility was fortified with 6-foot walls.” He said the military has “the most extensive Air Defence umbrella in the world over the Middle East right now and control of the skies is increasing with every wave of airpower.”
Parnell's office did not respond to questions about what role the walls would have played in defending against a drone attack or what air defences were present in range of the command centre at the port.
Capt Tim Hawkins, a spokesman for US Central Command, said “it would be inappropriate to comment given the incident is under investigation.”
