US auto-tariffs back in the forefront of EU, Japan talks - Reuters

As noted by Reuters, potential US auto tariffs on both the EU and Japan, a card which has thus far remained unplayed, is back to the front of the pack as the US looks to drag Japan and Europe to the deal-making table.

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The “Section 232” recommendations on ensuring a healthy U.S. auto industry are undergoing an interagency review process and will be discussed on Tuesday at a regularly scheduled weekly meeting of the Trump administration’s top trade officials, the officials said. The White House has pledged not to move forward with imposing tariffs on the European Union or Japan as long as it is making constructive progress in trade talks.

Japanese Finance Minister Taro Aso said he was scheduled to meet with U.S. Vice President Mike Pence on Tuesday but that their meeting would not be part of the economic dialogue between the two countries. Aso, speaking to reporters after a cabinet meting, said he did not expect to discuss auto tariffs with Pence and that there were many issues besides trade policy that they could discuss. Pence is in Japan on Tuesday during a visit to Asia.

The EU’s trade commissioner, Cecilia Malmstrom, is due to meet with U.S. Trade Representative Robert Lighthizer in Washington on Wednesday for more preliminary talks to launch trade negotiations. One of the officials, who was briefed on the matter, said the administration was sending a message that it is growing frustrated with the lack of progress on auto issues but did not expect immediate action on the recommendations on Tuesday.

The substance of the recommendations, such as which vehicles or parts could be subject to tariffs, and possible tariff rates, were not immediately known.