US President Donald Trump is on track to ease the impact of his auto tariffs, with changes sought by the industry that would lift some levies on foreign parts for cars and trucks made inside the US.
Imported cars would also be given a reprieve from separate tariffs on aluminum and steel, an effort to prevent multiple levies from stacking on top of each other, a White House official said on Monday.
“This deal is a major victory for the president’s trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing,” US Secretary of Commerce Howard Lutnick said in an e-mailed statement.
Photo: AFP
World stocks and the US dollar edged up yesterday by the auto tariff news, with Taipei, Hong Kong, Seoul, Sydney, Singapore, Mumbai and Manila staying in positive territory.
London was flat, but Paris and Frankfurt edged up in the early session yesterday. Shanghai dipped with Wellington, while Tokyo was closed for a holiday.
The expected shift, reported earlier by the Wall Street Journal, comes as Trump prepares to travel to Michigan, the heart of the US auto industry, to mark the first 100 days of his second term in the White House.
A proclamation setting the changes in motion could be signed as soon as yesterday, the official said, before Trump’s planned speech in Macomb County, a carmaking hub and bastion of blue-collar workers that Trump said his tariff plans are meant to help.
The pivot also would represent the latest evolution in Trump’s ever-changing trade strategy, following his decision earlier this month to pause higher tariffs on dozens of trading partners to allow time for negotiations.
The expected changes come just before the 25 percent tariffs on foreign auto parts are set to take effect on Saturday. Under the planned changes, automakers would be able to secure a partial reimbursement for tariffs on imported auto parts, the official said.
In a separate move, Trump is poised to ensure imported autos are not double-tariffed by also paying other levies on steel and aluminum.
“Ford welcomes and appreciates these decisions by President Trump, which will help mitigate the impact of tariffs on automakers, suppliers and consumers,” Ford Motor Co chief executive officer Jim Farley said in a statement.
General Motors (GM) Co chief executive officer Mary Barra said in a separate statement that “we believe the president’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the US economy.”
Additional reporting by AFP
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