U.S. gives Japan and the E.U. ultimatum to negotiate a deal to “limit or restrict” auto imports within 180 days

U.S. President Donald Trump will sign an executive order on May 17 that will give Japan and the European Union 180 days to negotiate a deal to “limit or restrict” imported cars and auto parts.

The executive order reportedly cites that American innovation capacity is at “serious risk” because auto and parts imports have displaced U.S.-owned production. Auto restrictions would mainly target countries with an export-oriented automotive industry such as Japan and Germany, while Canada, Mexico and South Korea would be exempted. Car manufacturers and suppliers with operations in the U.S. and those exporting vehicles and car parts to the U.S. would be affected by the restrictions. This Resilience360 special report helps in understanding the consequences of these trade regulatory measures and how they may affect businesses and their supply chains.

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