Shares of automakers in South Korea jumped in early morning trade on Thursday following reports overnight that the U.S. could delay implementing tariffs on the sector.
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.
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