Reprieve for auto exports to US

American president Donald Trump has postponed a decision to label imported vehicles and parts as a “national security threat” for up to six months to allow time for talks with the European Union and Japan, according to a White House statement. Any disruption in American vehicle imports would have a potentially devastating effect on South African exports to the US, which are dominated by vehicles and components. According to official US statistics, the country imported vehicles valued at US$553 million from South Africa in 2018. Trump is facing resistance
at home, as well as from trade partners. The American International Automobile Dealers Association (AIADA) president and CEO, Cody Lusk, says in a statement: "The truth stands: imported autos and auto parts are simply not a national security threat.
"Using this spurious claim as justification to force our trading partners into new negotiations will only create more uncertainty for America's entire auto industry, including our country's 9 600 international nameplate dealers and the 578 000 Americans they employ. "If President Trump follows
through on his threat to place 25% tariffs on imported autos and auto parts, he will be directly responsible for a drastic tax increase on American consumers, which could result in a loss of two million vehicle sales and jeopardise up to 700,000 American jobs."