Trump to Ease Tariff Impact on US Carmakers, Lutnick Says 👉 Updatem News

Automakers paying tariffs would not be charged other levies, such as those on steel and aluminum.

President Donald Trump will ease some levies imposed on foreign auto parts intended for use in U.S.-made vehicles, Commerce Secretary Howard Lutnick said on Monday.

Lutnick stated that Trump was “building an important partnership” with U.S. automakers through a deal intended to help lessen the impact of his tariffs on the domestic auto industry.

“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,” Lutnick said in a statement.

This arrangement, first reported by the Wall Street Journal, means U.S. automakers paying tariffs would not be charged other levies, such as those on steel and aluminum, and that reimbursements would be given for such tariffs that were already paid.

Trump previously imposed a 25 percent tariff on imported passenger vehicles and light trucks on April 3, with another 25 percent tariff on imported auto parts set to take effect on May 3.

The White House said last week that Trump was considering potential tariff exemptions for automakers, amid concerns that the tariffs could disrupt automotive supply chains and drive up consumer costs.

A coalition of U.S. automaker groups warned in an April 21 letter to Lutnick and other administration officials that many auto suppliers are in financial distress and cannot afford to endure “an abrupt tariff-induced disruption.”

“Tariffs on auto parts will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive and less predictable,” they stated.

“Many are already in distress and will face production stoppages, layoffs and bankruptcy,” they added, warning that “it only takes the failure of one supplier to lead to a shutdown of an automaker’s production line.”

The coalition comprises several auto industry groups—including the Alliance for Automotive Innovation—representing General Motors, Toyota Motor, Volkswagen, Hyundai, and other major automakers.

Trump seemed to acknowledge the challenge of reshoring production during an April 14 briefing, saying that automakers may need additional time to adjust.

“They’re switching to parts that were made in Canada, Mexico, and other places,” he told reporters. “They need a little bit of time because they’re going to make them here.”

The tariffs have drawn support from the United Automobile Workers (UAW) labor union. UAW President Shawn Fain said in a March 9 interview with ABC News that unbalanced trade with countries like Canada and Mexico has led to the loss of roughly 90,000 manufacturing facilities in the United States over the past three decades.

The Epoch Times reached out to the White House and the Department of Commerce for comment on the tariff arrangement but did not receive a response by publication time.

Tom Ozimek and Reuters contributed to this report.

Original News Source Link – Epoch Times

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