Trump considers pausing auto tariffs as White House gets sued over sweeping tariffs

Trump said that carmakers required time to reallocate their production from Canada, Mexico and other places, adding “And they need a little bit of time because they’re going to make them here, but they need a little bit of time. So I’m talking about things like that,” reported AP.

The statement by the Republican president has hinted at another reversal of tariffs imposed by the US government as the onslaught of import taxes on all its global trading partners has panicked the financial markets across the globe and raised concerns about a possible recession.

Trump had announced a 25% tariff on the automobile sector on March 27 and claimed that it will be permanent. Thereafter, on April 2, the president imposed reciprocal tariffs on all its partners ranging from 10% to 50% but later announced a 90-day moratorium after bond market sell-off pushed up interest rates on US debt.

The Trump administration implemented a baseline of 10% tariff against dozens of countries to give time for negotiations.

Trump gets sued

A legal advocacy group, Liberty Justice Center, filed a lawsuit in the US Court of International Trade on behalf of five small US businesses to block President Trump’s sweeping tariffs on global trading partners, and stated that the president overstepped his authority.

The lawsuit has challenged Trump’s reciprocal tariffs announced on April 2, which he termed as “Liberation Day” and the duties he has separately levied on China, Reuters reported.