President Donald Trump is preparing to implement measures aimed at mitigating the effects of his tariffs on US car makers, according to a senior official from the White House. This strategic move is being hailed as a significant triumph for Trump's trade policy, as it seeks to provide incentives for companies that manufacture domestically. Commerce Secretary Howard Lutnick shared this information in a statement to the Reuters news agency.
The upcoming announcement will focus on reducing certain import duties on parts sourced from abroad that are essential for vehicles manufactured within the United States. While automobiles produced outside of the country will still face automotive tariffs, they will be exempt from additional levies, as reported by the Wall Street Journal.
President Trump is scheduled to hold a rally in Michigan on Tuesday to commemorate his first 100 days in office. This state is significant as it is home to the renowned Detroit Three car manufacturers: Ford, General Motors (GM), and Stellantis. Additionally, Michigan boasts a vast network of over 1,000 major suppliers supporting the automotive industry.
Mary Barra, the CEO of GM, expressed her appreciation for the President's actions. "We're grateful to President Trump for his support of the US automotive industry and the millions of Americans who depend on us," she stated in an email to the BBC. She emphasized the productive discussions with the President and his administration and expressed eagerness to continue collaborating on industry issues.
Despite the positive reception from GM, Ford and Stellantis did not provide immediate comments regarding the announcement. Last week, a coalition of US motor industry groups urged the President to reconsider the proposed 25% tariffs on imported car parts. A letter sent to his administration from organizations representing companies such as GM, Toyota, and Volkswagen highlighted concerns that these levies would result in increased auto prices for consumers, decreased sales at dealerships, and higher costs for servicing and repairing vehicles.
President Trump had previously indicated that these tariffs were set to take effect by May 3, raising apprehensions among automakers and industry stakeholders about their potential impact on the automotive market.
