Trump will declare relief to car duties
US President Donald Trump will sign an order on Tuesday, which gives automotive producers producing vehicles in the United States, relief from some of its new 25% vehicle duties to give them time to return the supply chains in America, said the Minister of Trade Howard Lutnik.
Automobile manufacturers will receive loans for up to 15% of the value of vehicles assembled in the United States, which can be applied to the value of imported parts, Lutnik told reporters.
Cars and parts to 25% of cars duties will be released from the additional Trump duties, including the additional 25% of Canadian and Mexican goods, as well as 10% duties applied to most other countries.
Trump is not interested in raising the prices of cars. How much will the appreciation
The mitigating the impact of car duties is the last course of the Trump administration to show flexibility in terms of customs duties, which led to turmoil in the financial markets, created uncertainty about business and caused fears of a sharp slowdown in the economy.
General Motors CEO Mary Bara, and Ford CEO Jim Farley, praised the planned changes, saying that they would benefit from manufacturers, suppliers and consumers.
Car customs will hit the most working Americans
Last week, the US automotive industry called on Trump not to impose 25% duties on imported auto parts, warning that this would reduce car sales and raise prices. He had said he was planning to introduce them no later than May 3.
« The duties on auto parts will confuse the World Car Supply Chain and cause the domino effect that will lead to higher car prices, lower sales in dealership centers and make the service and repair of vehicles more expensive and less predictable, » the industrial groups said.
