The Trump administration said it plans to announce measures as soon as Tuesday to relieve the impact of tariffs on imported cars and car parts to give cars manufacturers more time to relocate production in the United States.
Tariffs or 25 percent in imported vehicles and in car parts will remain in place. But tariffs will be modified so that they are not “stacked” with other rates, for example in steel and aluminum, a White House spokesman said. Automobile manufacturers will not have to pay tariffs on those metals, widely used in cars, in addition to carrots in cars and parts.
In addition, car manufacturers will receive a refund for some of the tariff costs in imported components. The reimbursement will amount to up to 3.75 percent of the value of a new car in the first year, but will be removed gradually, the spokesman confirmed.
A 25 percent tariff on imported cars entered into force on April 3. On Saturday, tariffs will run to include imported parts.
“President Trump is building an important association with national cars manufacturers and our great American workers,” said Howard Lutnick, secretary of Commerce, in a statement. “This agreement is a great victory for the president’s commercial policy by rewarding companies that manufacture at the national level, while providing track track to manufacturers who have expressed their commitment to invest in the United States and expand their national manufacture.”
But even with thesis changes, there will still be substantial tariffs in imported cars and car parts, which will raise the prices of new cars and used by thousands of dollars and increase the cost of repairs and insurance premiums.
The Wall Street Journal previously reported the modification to the rates. Mr. Lutnick helped car manufacturers to ensure an important exemption from tariffs in March and has tasks of a role that defends relief for some industries affected by taxes.
Automobile manufacturers welcomed the change. “We believe that the president’s leadership is helping to level the playing field for companies such as GM and allow us to invest even more in the US economy,” said Mary T. Barra, executive director of General Motors, in a statement on Monday. “We appreciate productive conversations with the president and his administration and hope to continue working together.”
