The Trump administration is considering whether to reduce certain tariffs targeting the car industry that executives have warned would deal a severe blow to profits and jobs.
One measure would spare cars and car parts already subject to tariffs from facing additional duties from levies on steel and aluminium imports, according to people familiar with the matter. That would eliminate so-called “stacking” of levies.
Another option being studied would fully exempt car parts that comply with the US-Mexico-Canada trade pact, known as the USMCA, some of the people said. Those components do not currently face tariffs, but the administration had planned to tax the non-US share of those parts from Canada and Mexico. Fully sparing those parts would abandon that approach, which would present a potentially herculean logistical challenge.
The Financial Times earlier reported that the Trump administration was considering reducing tariffs on car parts – and that they might also exempt car parts bought from China from a 20 per cent tariff applied to the country over a dispute over fentanyl.
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Trump presses ahead with 25% tariffs on imported cars, ratcheting up trade war
Trump presses ahead with 25% tariffs on imported cars, ratcheting up trade war
The proposals and options remain under consideration and President Donald Trump has not signed off, cautioned the people who asked not to be identified discussing the matter because it is not public. His tariff policies often change quickly, underscoring the fluidity of policy deliberations. But the discussions offer a signal that the administration is considering ways to narrow the scope of levies affecting the car industry.
