Trump Considers Delay on Auto Parts Tariffs

President Donald Trump is considering a temporary delay on auto parts tariffs, a move that could offer short-term relief to automakers grappling with the ripple effects of his protectionist trade agenda.

“I’m looking at something to help car companies with it,” Trump said Monday in the Oval Office, suggesting he may pause certain import duties to give companies more time to transition manufacturing to the US. “They’re switching to parts that were made in Canada, Mexico and other places, and they need a little bit of time, because they’re going to make them here,” he added.

The remarks come just weeks before a sweeping 25% tariff on imported auto parts is scheduled to take effect by May 3, stoking fresh volatility in an industry already navigating supply chain disruptions and high costs. Markets responded quickly: shares of General Motors, Ford, and Stellantis reversed earlier losses and hit session highs following the president’s comments.

The automakers have acknowledged their willingness to absorb tariffs on fully assembled cars and major parts like engines and transmissions. But executives warn that blanket duties on small parts could result in billions in additional costs, triggering layoffs and undermining Trump’s goal of revitalizing American manufacturing.

“Broad parts duties would drive up costs by billions of dollars and trigger profit warnings and layoffs,” representatives from the Big Three reportedly told the administration, arguing that such measures could backfire economically and politically.

Adding to the uncertainty, the president also indicated that pharmaceutical imports could be the next target for tariffs, stating that duties in that sector may be “not too distant” in the future.


Information for this story was found via Bloomberg and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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