Trump steps back on tariffs: Relief for American carmakers
President of the USA, Donald Trump, plans actions aimed at alleviating the impact of tariffs on American car manufacturers, informed Commerce Secretary Howard Lutnick in a statement to Reuters. The Republican will summarise his first 100 days in the White House at a rally on Tuesday.
President Donald Trump intends to take steps to ease the impact of his tariffs on American car manufacturers, Reuters reports. He is set to announce a reduction of some tariffs on parts imported from abroad, which are used in vehicles manufactured in the USA.
Cars produced outside the country's borders will still be subject to import tariffs, but they are expected to be exempt from other tariffs, as previously reported by the "Wall Street Journal."
The BBC notes that Trump is scheduled to hold a rally on Tuesday in Michigan to celebrate his first 100 days in office. The state is home to the so-called Detroit Three — Ford, General Motors (GM), and Stellantis — along with a network of more than 1,000 major suppliers supporting the automotive industry.
Automakers await de-escalation of trade war
General Motors CEO Mary Barra welcomed the announcement regarding tariff reduction.
In a statement sent to the BBC, Barra expressed gratitude to President Trump for his support of the American automotive industry and the millions of Americans who depend on it.
Last week, a coalition of American automotive industry groups called on the US president to retract the idea of imposing a 25 per cent tariff on imported auto parts.
In a letter to the Trump administration, companies such as GM, Toyota, and Volkswagen stated that the tariffs "will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive." The US president had earlier announced that the tariffs would go into effect on 3rd May.
