Trump moves to ease car industry tariffs ahead of Michigan rally
U.S. President Donald Trump plans to take action to alleviate the impact of tariffs on American car manufacturers, according to Commerce Secretary Howard Lutnick in a statement to Reuters. On Tuesday, the Republican will be summarizing his first 100 days in the White House at a rally.
President Donald Trump intends to take steps to ease the impact of his tariffs on American car manufacturers, reports Reuters. On Tuesday, he is set to announce the reduction of some tariffs on parts imported from abroad that are used in vehicles manufactured in the USA.
Cars produced outside the country's borders will still be subject to tariffs on imported cars, but they are expected to be exempt from other tariffs, as noted by the "Wall Street Journal" earlier.
"Trump is due to hold a rally in Michigan on Tuesday to mark his first 100 days in office. The state is home to the so-called Detroit Three carmakers - Ford, General Motors (GM) and Stellantis - and a network of more than 1,000 major suppliers to the industry," notes BBC.
Car manufacturers are waiting for a de-escalation of the trade war
General Motors CEO Mary Barra welcomed the announcement regarding the tariff reduction.
"We're grateful to President Trump for his support of the US automotive industry and the millions of Americans who depend on us," stated Barra in a statement sent to the BBC.
Last week, a coalition of American automotive industry groups called on President Trump to back down from the idea of implementing 25 percent tariffs on imported car parts.
In a letter to the Trump administration, companies like GM, Toyota, and Volkswagen stated that tariffs "will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive." The U.S. President previously announced that the tariffs would be in effect by May 3.
