On April 29, Reuters quoted US officials as saying that the Trump administration is about to announce a policy to ease the impact of auto tariffs.
"President Trump has built a cooperative relationship with domestic automakers and American workers. This agreement is a major victory for the President's trade policy, by rewarding domestic companies while creating conditions for companies that have committed to invest and expand production in the US," US Commerce Secretary Howard Lutnick said in a statement.
According to WSJ sources, automakers that have paid import tariffs on cars will not have to pay additional taxes, such as tariffs on aluminum and steel. If they have paid these taxes, they will be refunded. The 25% import tax on cars and light trucks imported into the US took effect at the beginning of this month. Meanwhile, aluminum and steel tariffs have been imposed since March.
In addition, the Trump administration also changed import taxes on auto parts. The tax is expected to take effect on May 3 at a rate of 25%. Accordingly, in the first year, companies will be refunded tax equivalent to 3.75% of the value of a car manufactured in the US. The refund for the second year is 2.5%, after which it will end.
On Reuters, a White House official confirmed this information, saying that an official announcement will be made on April 29. This is the latest move by the US to ease import taxes. His recent trade policies have shaken global financial markets, destabilized business operations, and raised concerns about an economic downturn.
Automakers said they expected Trump to announce the appeasement before he visits Michigan to mark his first 100 days in office. Michigan is home to three major automakers and more than 1,000 auto parts suppliers in the United States.
Last week, several auto associations urged Trump to drop the plan to impose auto parts tariffs, warning that it could hurt sales and raise prices. The group represents General Motors, Toyota Motor, Volkswagen, Hyundai, and others.
"Most parts suppliers do not have the financial resources to deal with the sudden disruption caused by tariffs. Many suppliers are already in dire straits and could face production stoppages, layoffs, or bankruptcy. The failure of one supplier could bring a company's production line to a standstill," the associations warned.
(according to Reuters, WSJ)