Donald Trump to exempt car makers from some American definitions

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US President Donald Trump is planning to spare car makers from some of the most customary tariffs, to climb another trade war after strong pressure by the executives in the industry in recent weeks.

This step will exempt auto parts from the definitions that Trump imposes on imports from China to counter the production of fentanel, as well as those who impose steel and aluminum – “mobilizing” duties, according to two people knowing the matter.

The exemptions in their place will leave a 25 percent tariff of Trump imposing it on everyone External cars imports. A 25 percent separate tax will remain on the parts, and it is scheduled to enter into force as of May 3.

Although Washington has already protected cars from the “mutual” definitions announced on the main commercial partners, American car companies have paid in recent weeks to obtain more exemptions.

The concessions will determine an initial victory for the auto sector and another decline by Trump at the most aggressive Definitions Amid concerns that they will do the prices of American cars, disrupt supply chains and cause job losses.

The executive managers of cars rose their criticism of the definitions during the past week, with Stelantis President John Elcan warning that “American and European auto industries are at risk” through Trump’s commercial policy.

Another car executive said: “We have urged the administration – do not strike us again and again with all these other definitions … because that endangers our sector’s health at risk,” said another car executive.

Retrive is also the latest sign that Trump is open to presenting preferred industries after customs tariff plans have sparked a deep sale in global markets this month and warnings that can lead to American recession.

Trump announced a “mutual” classification joint by approximately 50 percent on almost every American trading partner on “Tahrir Day” on April 2, before reducing the drawings to the foundation line by 10 percent for 90 days.

Last week, the administration said it will exempt consumer electronics such as laptops and smartphones from mutual definitions, but it is likely to reach these imports with other fees later this year.

The president also indicated last week that there will be there “Helps” For the auto industry. He also provided better conditions for automobile imports made in Mexico and Canada, as long as companies complied with the rules of the USMCA trade agreement for 2020.

Vehicles and full parts of USMCA will get a 25 percent tariff that has been applied only to their non -American content.

People with discussions said that the current negotiations focus mainly on facilitating the implementation of the fees – for example, by simplifying the rules on the place of obtaining the components of the car.

Trump imposed a 20 percent tariff on all imports from China for revenge for the country’s role in manufacturing fentanel. Later, he applied the separate “mutual” tariff to Chinese imports, which shocked up to 125 percent.

Car parts are exempted from “mutual” definitions, so they are currently facing only 20 percent of “Fintanel” tax, along with any applicable duties for steel and aluminum content, along with a vehicle tariff of 25 percent.

The White House refused to comment.