US President Donald Trump has decided not to impose tariffs on imported cars for six months to allow more time for trade talks.
However, the White House said that he agreed with the findings of an official report that imported vehicles and parts can threaten US national security.
Mr Trump had threatened to impose tariffs of up to 25% on imported cars and lorries.
The postponement comes ahead of a Saturday deadline to implement recommendations by the commerce department to protect the US auto industry from imports on national security grounds.
Mr Trump has directed US Trade Representative Robert Lighthizer to seek negotiations with the European Union and Japan and report back within 180 days.
If no deal is reached by then, Mr Trump will decide "whether and what further action needs to be taken."
The president has said he agreed with a departmental study that found some imported cars and trucks are "weakening our internal economy" and threaten to harm national security.
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It included figures which showed US-owned companies' share of the American car market had declined from 67% in 1985 to 22% (3.7 million units) in 2017.
At the same time, the report said imports nearly doubled, from 4.6 million units to 8.3 million units.
In a statement, Mr Trump said "domestic conditions of competition must be improved by reducing imports" and argued a strong US car sector was vital to US military power.
US Commerce Secretary Wilbur Ross told Mr Trump that "successful negotiations could allow American-owned automobile producers to achiRead More – Source