Media: Trump plans eases in auto duties

According to media reports, US President Donald Trump plans relief in the tariffs for the auto industry after appeals from the industry. In this way, taxes for imported components are to be mitigated in the United States at assembly, wrote the « Wall Street Journal » and the Bloomberg financial service. Also, the additional tariffs on aluminum and steel should not be due for cars, it was said, citing informed people and government officials. This should avoid a double burden.

Trump had announced tariffs from 25 percent to imported cars and components. The delivery for finished cars came into force at the beginning of April, which is to follow for parts on May 3.

There were warnings of drastic negative consequences and price increases from industry. According to estimates of market researchers, around half of the vehicles sold in the USA are assembled outside the country. Even US manufacturers produce many cars abroad, for example in Mexico. And the vehicles built in the USA also only come from their own country to 40 to 50 percent.

Repayments for auto parts tariffs

German companies also export auto parts to the USA to a larger scale – both as a delivery for American carmakers and for the car factories of German manufacturers in the USA. The US works of German car manufacturers are also dependent on imports from third countries.

According to the reports, a transition phase is planned for the 25 percent tariffs for components. In the first year, manufacturers are to be refunded up to 3.75 percent of the value of a vehicle built in the USA, the « Wall Street Journal » wrote. In the second year the proportion falls to 2.5 percent – and from the third year there are no more repayments.

In a statement at Bloomberg, US trade minister Howard Lutnick emphasized that the government rewarded manufacturers who wanted to produce in the United States. According to Trump’s tariffs, industry representatives had also pointed out that the factories could not be moved to the United States at short notice.

Trump wanted to lash the relief before appearing near the US autometropolis Detroit on Tuesday evening, the media reports said.