South Korean auto stocks jump after reports that US could delay tariffs
A Toyota car assembly manufacturing line at Tianjin FAW Toyota Factory in Tianjin, China.
Visual China Group | Getty Images
Auto stocks in South Korea jumped in opening trade on Thursday, before giving back some gains, after reports that the U.S. may delay tariffs on the sector.
The moves followed overnight developments that U.S. President Donald Trump’s administration may push back auto tariffs by up to six months, multiple sources told CNBC. That news sent auto stocks such in the U.S. higher.
The White House has until Saturday to decide on whether to slap duties on imports of cars and auto parts, amid concerns over national security. After Saturday, the administration would have another 180 days to come to a decision as long as it is negotiating with its counterparts.
The latest development came amid an escalating trade fight between the U.S. and China, after Washington raised tariffs on $200 billion worth of Chinese imports last week. In retaliation, Beijing also increased tariffs on $60 billion worth of American goods earlier this week. The U.S. has raised the possibility of slapping tariffs on an additional $300 billion in goods from China.
Recent data releases have also fueled concerns over the protracted trade war’s impact on world economic growth.
— CNBC’s Kayla Tausche, Jacob Parmuk and Fred Imbert contributed to this report.