Trump Exempts Automakers, Some Suppliers From Reciprocal Tariffs
President Donald Trump has spared vehicle manufacturers and some auto part suppliers from sweeping new “reciprocal” tariffs announced today, according to the White House.
Imported vehicles are still subject to the 25% tariffs announced last month and set to go into effect at midnight tonight. The effective date for tariffs on imported parts, initially announced as April 6, has been pushed back to May 3.
Trump has framed the tariffs both as a short-term national security measure and a long-term means to domesticize the production of vehicles and other goods sold to Americans. Auto industry experts and other market and economy watchers have warned they will raise prices, slow sales and decrease production.
“Large and persistent annual U.S. goods trade deficits have led to the hollowing out of our manufacturing base; resulted in a lack of incentive to increase advanced domestic manufacturing capacity; undermined critical supply chains; and rendered our defense-industrial base dependent on foreign adversaries,” a White House fact sheet detailing the tariffs states, in part.
