Bloomberg Reports
Announcement Could Come as Early as the 17th
Industry Lobbying by Ford, GM Reflected
Bloomberg reported on October 16 (local time) that the Donald Trump administration in the United States is pushing to ease tariffs on the American automobile industry.
Ford vehicles placed on the assembly line at the Ford Louisville Assembly Plant in Louisville, Kentucky, USA. Photo by AP Yonhap News
According to sources, the U.S. Department of Commerce is expected to announce plans to extend for five years a system that allows for the reduction of tariffs imposed on imported auto parts. Originally, this measure was set to expire in two years, but it has reportedly been adjusted to extend the deadline in response to industry demands.
Sources said that the Commerce Department's announcement could come as early as October 17. However, they added that similar tariff-related announcements have often been delayed in the past. The details of this policy will be released when the government officially implements new tariff measures on imported trucks.
In a proclamation signed last April, President Trump ordered that for one year, tariffs be reduced on parts that account for 15% of the total value of vehicles assembled in the United States, and that in the following year, tariffs be cut for parts accounting for 10% of the total value.
Accordingly, the Department of Commerce allowed automakers to use 3.75% of the total manufacturer's suggested retail price of all vehicles assembled in the United States from April of this year for one year to offset parts tariffs. For the following year, the offset rate was to be lowered to 2.5%, after which the system would be gradually phased out.
Bloomberg analyzed that this easing measure is the result of months of lobbying by American automakers such as Ford and General Motors.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
