Most levies on imported cars and car parts will remain in place, but automakers have secured some relaxation of the trade policy.According to The New York Times, President Trump has signed two executive orders that will ease some tariffs for carmakers, but most levies on imported cars and car parts will remain in place. This comes after complaints from companies like Ford and General Motors that the tariffs would hurt U.S. manufacturing by increasing production costs and reducing profits.
Under the new orders, carmakers that pay a 25 percent tariff on auto imports will not be subject to additional levies on steel, aluminum, or certain imports from Canada and Mexico. However, they will still have to pay tariffs on steel and aluminum that their suppliers pass on to them.
The orders also allow carmakers to qualify for tariff relief on a portion of their imported components, but these benefits will be phased out over the next two years. President Trump stated at a rally in Michigan that he wants carmakers to make their components in the United States, and that he is giving them some time before imposing harsher measures.
This decision to reduce the scope of the tariffs is a sign that the Trump administration’s trade policies have created challenges and uncertainty for American companies. However, analysts say that even with these concessions, the tariffs will still add thousands of dollars to car prices and could harm the financial health of automakers and their suppliers.
President Trump signed the executive orders while en route to Michigan, where he gave a speech marking his 100 days in office. The state is home to America’s largest automakers.
Source:Read More