The US President Donald Trump signed two executive orders aimed at easing the impact of his auto tariffs by providing tax breaks and easing other levies on materials, while his trade team announced its first deal with a foreign trading partner.
Reuters writes about this.
The moves partly reassured investors worried about Trumpʼs unpredictable trade policies, which came after he visited Michigan, the cradle of the US auto industry, just days before a new package of 25% import tariffs on auto components took effect.
In another partial retreat from tough tariff policies, Trump agreed to give automakers two years to increase the share of domestic components in vehicles assembled in the United States.
This decision will allow them to offset duties on imported auto parts used in the assembly of cars in the United States in the amount of up to 3.75% of the manufacturerʼs suggested retail price of the car — until April 2026, and up to 2.5% of US production volumes — until April 30, 2027.
The White House noted that the changes do not apply to the already existing 25% tariffs imposed last month on the 8 million cars that the United States imports each year.
Autos Drive America, a group representing Toyota, Volkswagen, Hyundai and nine other foreign automakers, said Trumpʼs order did provide some relief, "but more needs to be done to give a powerful boost to the American auto industry".
Meanwhile, the US Commerce Secretary Howard Lutnick said he had reached a deal with one foreign country that would permanently ease “reciprocal” tariffs that Trump plans to impose. Lutnick declined to name the country, saying the deal was subject to local approval.
“I have a deal, but I need to wait for it to be approved by their prime minister and parliament,” he said.
- On April 2, the US President Donald Trump reported that he would impose tariffs on goods from other countries. The new tariffs will apply to more than 180 countries and territories (not including Russia, North Korea, Cuba and Belarus, which are already under sanctions). A 10% tariff was imposed on Ukraine.
- As early as April 9, Trump postponed tariffs on all but China, which received the highest tariffs of 145%, while most countries are subject to a base rate of 10%. And in mid-April, Trump threatened to impose tariffs of 245% on China.
- Starting April 3, car imports to the US will be subject to a 25% tariff on top of the previous 2.5% levy. Starting in May, 150 categories of auto parts were also to be subject to additional tariffs.
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