Trump Considers Easing Auto Tariffs... Eliminating Overlaps and Easing Parts Tariffs

The Wall Street Journal (WSJ) and other outlets reported on April 28 (local time) that U.S. President Donald Trump is considering measures to mitigate the impact of tariffs imposed on foreign cars and auto parts.

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According to the reports, President Trump is planning to adjust tariffs to prevent overlapping duties on other items such as steel and aluminum, in addition to the 25% tariff imposed on foreign automobiles. This measure will be applied retroactively, and WSJ stated that automakers who have already paid overlapping tariffs are expected to be able to apply for refunds.

The 25% tariff that was scheduled to be imposed on foreign auto parts starting from May 3 is also expected to be adjusted. WSJ reported that automakers will be able to receive refunds on parts tariffs up to an amount equivalent to 3.75% of the price of a domestically manufactured car, and in the second year, this will be reduced to 2.75%, after which the refund will be eliminated.

President Trump is expected to announce these measures before attending a rally marking his 100th day in office, which will be held on April 29 in the outskirts of Detroit, Michigan. Sources said, "These measures will give automakers time to shift their parts supply chains to the United States," and added, "In the short term, this could be a significant help to automakers." However, they also noted that it remains unclear how the funding for the refunds will be secured.

Howard Lutnick, U.S. Secretary of Commerce, stated in a press release on the same day, "President Trump is building an important partnership with domestic automakers and American workers," and evaluated, "This agreement has delivered a victory for President Trump’s trade policy by compensating companies that produce domestically and providing a platform for those that have expressed their intention to invest in the United States and increase production."