Trump eases tariffs on car manufacturers

WashingtonAfter implementing a partial truce on reciprocal tariffs and easing the tone with China, the White House is also easing its tariffs on vehicle imports. Donald Trump signed an executive order this Tuesday to soften the impact of taxes on imports of some parts and other foreign car assembly materials used in US factories. The tariff relaxation takes effect the same day it is signed.

The tariff easing comes after renewed pressure from major automakers following the implementation of 25% tariffs in early April. The day after "liberation day"—the day on which the tariff table was unveiled to the world—the automotive giant Stellantis held a rally in Detroit. temporarily laid off 900 workers due to the tariffs.

Trump himself acknowledged from the White House that there were some companies that have been "greatly affected" by the tariffs and promised to "study the case." Three weeks after speaking this way, the White House will try to apply palliatives to avoid suffocating the automotive industry and give it some leeway.

"We want to give automakers a path to do it quickly, efficiently, and create as many jobs as possible," explained Treasury Secretary Scott Bessent this Tuesday morning in a press conference from the White House, which will be able to manufacture them. compensation of up to 3.75% equivalent to the value of a vehicle of a car manufactured within the country for one year. In the second year, the maximum that can be offset will be reduced to 2.5%. 25% on imports of foreign parts and vehicles. In addition, the changes also protect automakers from the additional costs of other tariffs. Thus, the total tariff they pay for the vehicle import will not exceed the amount they are also taxed at 25%.

The signing of the order coincides with the event Trump is scheduled to hold in Michigan, north of Detroit, to celebrate his 100 days in office. Michigan is one of the major hubs for car manufacturing and was one of the key states promising reindustrialization. But for now, since the president took office three months ago, Michigan's unemployment rate has continued to rise, including a jump of 1.3% in March to 5.5%, according to state data. "Ford welcomes and values these decisions by President Trump, which will help mitigate the impact of the tariffs on automakers, suppliers and consumers," said Jim Farley, the company's chief executive, in the published document.