U.S. President Donald Trump plans to exempt some tariffs related to auto parts for domestic automakers, the Financial Times (FT) reported on the 23rd (local time).
According to FT, the Trump administration is considering exempting auto parts from the tariffs imposed on products imported from China related to synthetic opioid fentanyl (20%) and the steel and aluminum tariffs that apply globally (25%).
If such a plan is actually implemented, it could be seen as another tariff retreat measure. FT noted that this would signify another retreat by President Trump amid concerns that tariffs could lead to increased U.S. auto prices, supply chain disruptions, and job losses.
However, the 25% tariff already imposed on all foreign-made cars will remain in place. The 25% tariff on auto parts, which are not exempt from tariffs, will be applied starting from the 3rd of next month.