Trade conflict
Trump plans eases of tariffs on auto parts
According to Donald Trump’s announcement of tariffs on auto parts, the industry warned of significant price increases in the United States. The message has arrived in the White House – at least a little.
Car manufacturers in the United States get relief from the tariffs on components. A high -ranking employee of the Ministry of Commerce confirmed corresponding media reports. The spokeswoman for the White House, Karoline Leavitt, had previously stated that President Donald Trump would sign decrees on Autozöllen during the day (local time). The government reacted to complaints from the industry.
Trump himself said it was just a “little help” during a “short transition phase”. The reliefs were very limited, he pushed. “Basically, they pay 25 percent,” he emphasized with a view to the car manufacturers.
The new exceptions are to be mitigated for imported components when assembly in the USA. As the representative of the US Ministry of Trade confirmed, the additional tariffs on aluminum and steel should not be due for auto parts. This should avoid a double burden.
The regulation should also apply to foreign car manufacturers in the United States, the employee said. He cited BMW as an example with his factory in the state of South Carolina or Mercedes in the state of Alabama. The US works of German car manufacturers rely on imports from third countries. German companies also export auto parts to the USA to a larger scale – both as a delivery for American carmakers and for the car factories of German manufacturers in the USA.
Repayments for auto parts tariffs
According to the information from the Ministry, a transition phase for the 25 percent tariffs for components is now planned. Manufacturers are to be reimbursed up to 3.75 percent of the value of a vehicle built in the USA in the first year, the “Wall Street Journal” wrote. In the second year, the share falls to 2.5 percent – from the third year, the government representative said.
Trump had announced tariffs from 25 percent to imported cars and components. The delivery for finished cars came into force at the beginning of April, which is to follow for parts on May 3. Finance Minister Scott Bessent said at a press conference in the White House that the relief would contribute significantly to the organization of American automotive production.
There were warnings of drastic negative consequences and price increases from industry. According to estimates of market researchers, around half of the vehicles sold in the USA are assembled outside the country. Even US manufacturers produce many cars abroad, for example in Mexico. And the vehicles built in the USA also only come from their own country to 40 to 50 percent.
In a statement at Bloomberg, US trade minister Howard Lutnick emphasized that the government rewarded manufacturers who wanted to produce in the United States. According to Trump’s tariffs, industry representatives had also pointed out that the factories could not be moved to the United States at short notice.
dpa
Source: Stern
