TD Securities analysts point out that according to press reports, the Trump administration is likely to delay its decision to impose tariffs on auto imports from the EU and Japan ahead of the May 18 deadline.
“Reports suggest the administration may postpone its decision by up to six months. Separately, the US, Mexico and Canada appear to be close to a deal seeking to eliminate steel and aluminum tariffs. This would remove an important obstacle in Congress as some Republican Senators urged it as a condition to get their support for the USMCA deal. However, its passage would still face an uphill battle in the Democratic controlled House of Representatives.”