The United States will reportedly exempt South Korea from new auto tariffs thanks to a bilateral free trade agreement renegotiated last year.

Citing a draft executive order to be signed by U.S. President Donald Trump this week, Bloomberg reported on Wednesday that South Korea, Canada and Mexico will be exempt from the new U.S. auto tariffs. 

Trump will delay new auto tariffs for up to six months for the European Union and Japan as the U.S. is in trade negotiations with them. 

A formal announcement on delaying a decision on imposing tariffs on imported cars and parts is expected by Saturday. 

That's the due date for Trump to make a decision on recommendations by the Commerce Department to protect the U.S. auto industry from imports on national security grounds. 

Trump had threatened to slap tariffs of 25 percent on imported cars and parts.