Trump plans to spare auto sector from fentanyl-linked tariffs, says FT
Make us a preferred source
Make us a preferred source on Google
The news: US President Donald Trump is planning to spare carmakers from some of his most onerous tariffs, in another trade war climbdown following intense lobbying by industry executives, the Financial Times reported.
The move would exempt car parts from tariffs Trump is imposing on imports from China to counter fentanyl production, as well as from those levied on steel and aluminium—a “destacking” of the duties, the paper said, citing two people with knowledge of the matter.
The White House declined to comment.
The numbers: In February, Trump set a 20% fentanyl-related tariff on all Chinese imports, as well as tariffs of 25% on steel and aluminium.
The exemptions would leave in place a 25% tariff Trump imposed on all imports of foreign-made cars, the report said. The separate 25 % levy on parts due to take effect from 3 May would also remain.
The context: The concessions would mark an initial win for the auto sector and another retreat by Trump amid concerns that the tariffs would push up US car prices, disrupt supply chains and cause job losses.
Earlier on Wednesday, White House press secretary Karoline Leavitt said the Trump administration was not planning any “unilateral” tariff reductions on China.
“Let me be clear,:” she told Fox News. “There will be no unilateral reduction in tariffs against China.”
“The president has made it clear China needs to make a deal with the United States of America, and we are optimistic that will happen. When that continues, it’ll be up to the president what the tariff rate on China will be.”
The FT report comes as Reuters also reported the Trump administration would look at lowering tariffs on imported Chinese goods pending talks with Beijing. A separate report by the Wall Street Journal said the White House is considering cutting its tariffs on Chinese imports in a bid to de-escalate tensions.
The source: Financial Times
