European autos stocks surged on Wednesday after Bloomberg reported, citing sources, that US President Donald Trump plans to delay imposing threatened tariffs on car imports as the White House focuses on its spat with China.
Europe’s autos and suppliers index jumped, up as much as 2.2%, after the report which follows a Reuters report last week that automakers expect Trump to delay his decision on car tariffs for up to six months. Germany’s DAX, home to the region’s biggest carmakers, jumped on the news, up as much as 0.7%. The pan-European STOXX 600 rose briefly into positive territory before giving back gains.
Meanwhile, US President Donald Trump is expected to delay a decision on tariffs on imported cars and parts by up to six months, three administration officials told media. A formal announcement is expected by Saturday, the officials added.
The administration has drafted language to formally delay a decision on the tariffs that is due by May 18. Reuters reported last week that automakers expected Trump to delay the decision as talks continue with the European Union and Japan. General Motors Co, Volkswagen AG, Toyota Motor Corp and others have warned of the damaging impacts of imposing tariffs of up to 25 percent on imported cars and parts.