Donald Trump will use a visit to US industrial Heartlands on Tuesday to reveal more tariff reliefs for some of the world’s largest car manufacturers, his last retreat from the overall trade war.
The president will announce that he is sparing car manufacturers from some of his most heavy rates and will offer companies that make their vehicles in small discounts in the United States to compensate for the cost of taxes. Car manufacturers The import of parts will also be spared by the administration’s tariffs on steel and aluminum, staff said.
“We just wanted to help them enjoy this small transition, short -term,” Trump told reporters outside the White House. “If they couldn’t get parts, we didn’t want to penalize them.”
Trump’s movements will be formalized in an enforcement order on Tuesday that the president is expected to sign on his trip to Michigan, a center of US automotive production, where he will celebrate his 100th day of service.
The relief comes only four days before the administration imposes 25 percent Tariff of imported parts for cars. A separate 25 percent tariff for the entire import of foreign cars was imposed earlier this month and includes some exceptions to Mexico and Canada.
A senior official of the Ministry of Commerce said that changes to Trump’s car rates for cars were “created to allow all internal car manufacturers to increase their plan, to increase their employment and to build more factories in America.”
Financial Times first reported to Trump Plan to relieve the new car rate last week. The president’s trade war has caused anxiety in the automotive industry about the additional costs he has faced to increase US production.
Although Trump’s executive order will simplify his tariff regime for car parts, manufacturers will still be the 20 %tariff that he has applied to all of China imports.
Parts of Mexico and Canada, which are in accordance with the rules of the USMCA trade agreement in 2020, will be left without tariffs. The non -compliant vehicles will face a maximum tariff of 25 percent.
The tariff discount on the executive order would allow car manufacturers who assemble their vehicles in the United States to recover up to 3.75 percent of its value for the next year, according to a senior trading department. It will drop to 2.5 percent of May 1, 2026 and will be terminated in full on April 30, 2027.
Tariff softening follows an industry lobbying to mitigate their costs and uncertainty. Car manufacturers including General Motors, Volvo Cars and Porsche, have pulled or drastically lowered their guidelines for profitS
The heads of Ford, GM and Stellantis welcomed relief measures, although some leaders complain that the tariff structure remains too complicated.
“We are looking forward to our continuous cooperation with the US Administration to strengthen a competitive US automotive industry and stimulate exports,” said Stellantis chairman John Elkan.
GM CEO Mary Bar said: “We believe that the president’s management helps to equalize conditions for companies such as GM and allows us to invest more in the US economy.” Ford said Trump’s decisions would “help mitigate the impact of tariffs on car manufacturers, suppliers and consumers.”
Early on Tuesday, GM abandoned his previous profit guide And they temporarily stopped buying shares, accusing the uncertainty of tariffs.