Trump Issues Order to Relieve Auto Tariffs
(MENAFN) U.S. President Donald Trump signed a proclamation on Tuesday that introduces compensation for automobile manufacturers importing auto parts and assembling vehicles in the U.S., responding to growing pushback against tariff policies in various industries.
A 25-percent tariff on imported automobiles went into effect on April 3, and a similar 25-percent tariff on automobile parts is set to begin on May 3.
The new measure provides an "offset" for a portion of the tariffs on auto parts used in U.S.-assembled vehicles. It offers 3.75 percent of the manufacturer's suggested retail price for the first year and 2.5 percent in the second year for U.S. production. This effectively exempts 15 percent of the value of U.S.-assembled cars from tariffs in the first year and 10 percent in the second year, according to a White House fact sheet.
"The proclamation modifies the tariff action on automobiles and automobile parts by encouraging manufacturers to assemble their automobiles in the U.S., thereby reducing American reliance on foreign imports of automobiles and automobile parts," the White House stated.
Data from official sources revealed that Americans bought 16 million vehicles in 2024, half of which were imported. Of the 8 million vehicles made in the U.S., the average domestic content was about 40 to 50 percent.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
