Trump Mulls Automotive Sector Relief from Certain Tariffs

The White House has signaled that President Donald Trump is open to providing the automotive sector with relief from specific tariffs, following weeks of industry pressure.

Multiple administration officials confirmed to CNBC on Wednesday that exemptions are under consideration that would shield car manufacturers from portions of Trump’s broader trade measures.

The potential relief would specifically target auto parts imported from China currently subject to anti-fentanyl tariffs, as well as from levies on steel and aluminum, according to sources familiar with the discussions.

Related: Trump Backtracks on China Tariffs After Economic Pressure Mounts

Industry executives refer to this approach as duty “layer reduction,” preventing the cumulative effect of multiple tariffs on the same products.

These proposed changes would not affect the forthcoming 25% duty on imported vehicles nor the separate 25% fee on imported components scheduled for implementation next week, a Financial Times report said.

Related: ‘More of an Instinct’: Trump Explains How He’ll Decide Which Companies Get Tariff Exemptions 

In an unprecedented move, the nation’s six leading automotive trade organizations have formed a coalition to advocate against the impending parts tariffs, warning of cascading effects throughout the manufacturing sector.

Manufacturing representatives emphasized that many parts suppliers operate on thin margins and face significant challenges absorbing additional costs.

Related: Musk Says Trump’s Auto Tariffs Will Hurt Tesla

In separate remarks Wednesday, Trump indicated the existing 25% duty on Canadian vehicle imports might increase, stating his administration’s preference for domestic automobile production.


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.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

US Readies Up To 3,521% Tariff on Southeast Asian Solar Panels

The US Commerce Department is set to impose tariffs as high as 3,521% on solar...

Tuesday, April 22, 2025, 12:11:00 PM

‘5 Planes Full of iPhones’: Apple Rushes Shipments to US Ahead of Trump Tariffs

Apple (Nasdaq: AAPL) reportedly flew five cargo planes loaded with iPhones and other products from...

Wednesday, April 9, 2025, 07:35:22 AM

Bank of Canada Warns Tariffs Would Slash Growth, Push Inflation Higher

Bank of Canada Governor Tiff Macklem warned on Friday that proposed US tariffs would permanently...

Tuesday, February 25, 2025, 02:51:00 PM

Auto Tariffs Coming in April, Trump Says

President Donald Trump said Friday he plans to roll out auto import tariffs around April...

Monday, February 17, 2025, 08:25:24 AM

Trump Wants To Abolish Income Tax, Shifts Federal Revenue Source From Tariffs Instead

US President Donald Trump has called on Congress to abolish federal income tax and have the country...

Tuesday, January 28, 2025, 12:10:00 PM