Trump to sign order easing auto tariffs after industry outcry
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The news: President Donald Trump is set to sign an executive order Tuesday afternoon (Wednesday morning AEST) to soften the impact of his 25% tariffs on autos and auto parts, the White House said.
The context: The changes follow warnings from automakers that the tariffs could raise prices, reduce sales and make US production less competitive.
The numbers: Companies that finish vehicles in the US will receive credits equal to 15% of the car’s value this year and 10% next year, effectively offsetting the auto parts tariffs, a senior Commerce Department official told reporters, the Associated Press said.
Automakers paying the 25% vehicle tariff will not also be charged duties on steel, aluminium, or Canadian and Mexican goods. Instead, they will pay whichever tariff is higher, the official said.
The move would be retroactive, meaning that automakers could be reimbursed for such tariffs already paid. The 25% tariff on finished foreign-made cars went into effect early this month.
Trump was scheduled to sign the order before travelling to Michigan to mark his first 100 days in office.
The sources: Reuters , Bloomberg, The Wall Street Journal
