President Trump Considering Tariff Exemptions for Auto Industry
Late last month, President Trump’s tariff announcement included 25 percent on imported vehicles, sending automakers into a frenzy as they work to adjust supply chains and production schedules. However, earlier this week, the president said he was considering exemptions for the auto industry to give companies more time to adjust their operations.
Late last month, President Trump’s tariff announcement included 25 percent on imported vehicles, sending automakers into a frenzy as they work to adjust supply chains and production schedules. However, earlier this week, the president said he was considering exemptions for the auto industry to give companies more time to adjust their operations.
The American Automotive Policy Council’s president Matt Blunt said, “There is increasing awareness that broad tariffs on parts could undermine our shared goal of building a thriving and growing American auto industry and that many of these supply chain transitions will take time.” President Trump’s remarks echoed those concerns, saying, “I’m looking at something to help some of the car companies with it.”
If an exemption is granted, it would be one of several carve-outs in the president’s tariff plans. He has already announced exemptions for smartphones, computers, and other electronics, but the stated plan is for those to be temporary exceptions. While those changes give companies more time to navigate the new reality, the back-and-forth on tariffs has caused significant turmoil in the markets and with consumer confidence.
Even if the auto industry gains a temporary exemption, some have already begun shifting their production efforts here to compensate for the tariffs. Honda may move a significant portion of its Canadian and Mexican operations to the U.S., and Hyundai will soon expand its manufacturing footprint with a new battery factory.
[Images: BMW, Genesis, Mercedes-Benz]
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