Trump to relieve tariffs faced by US car manufacturers

President Donald Trump will provide a tariff relief to car manufacturers on Tuesday, only weeks after the start of automatic taxes caused warning warnings.

An administration official confirmed that the 25% rate on cars and foreign manufacturing parts will end, but today’s announcement will prevent tariffs from stacking on other rates that he has imposed, such as steel and aluminum tasks.

The Trump 25% rate on foreign cars parts enters into force on Saturday and car manufacturers will also receive reimbursements for these rates up to an amount equal to 3.75% of the value of a car made by the United States for a year. The refund would fall to 2.5% of the value of the car in a second year, and then completely eliminated.

Speaking at the White House on Tuesday, Treasury Secret

“President Trump has had meetings with producers from national and foreign cars, and is committed to bringing cars to the US to the US.

Trump is expected to deliver comments on policy change in Michigan on Tuesday. The details of the plan were reported for the first time in the Wall Street Journal.

American automobile manufacturers applauded tariff flexibility on Tuesday.

“Ford welcomes and appreciates these decisions of President Trump, which will help mitigate the impact of tariffs on car manufacturers, suppliers and consumers,” Ford told ABC News in a statement.

GM also expressed praise for move. “We thank President Trump for his support for the United States automotive industry and millions of Americans who depend on us. We believe that the president’s leadership is helping at leveling the playing field for companies such as GM and allowing us to invest even more in the economy of the United States,” the company told ABC News in a statement.

The 25% rate in imported cars entered into force on April 3. It applies to a variety of passenger vehicles, including cars, SUV, minivans, load vans and light trucks.

Tariffs will surely increase foreign -made cars prices, experts told ABC News, since importers generally transmit a part of the tax burden on consumers in the form of additional costs.

Policy change offers car manufacturers the opportunity to relocate their manufacture, said Secretary of Commerce Howard Lutnick to ABC News 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,” Lutnick said.

The movement aims to give car manufacturers the opportunity to move their supply chains for the back to the US.

“President Trump is building an important association with manufacturers of national cars and our great American workers,” Lutnick said also in the statement.