U.S. President Donald Trump is reviewing measures to ease the impact of tariffs imposed on foreign cars and parts, the Wall Street Journal (WSJ) reported on the 28th.
According to WSJ, President Trump is pursuing measures to adjust tariffs on other items such as steel and aluminum to prevent overlaps with the 25% tariff imposed on complete foreign vehicles. This measure is expected to be applied retroactively, and it seems that automobile manufacturers who have already paid overlapping tariffs will be able to apply for refunds.
Additionally, starting from the 3rd of next month, the 25% tariff that was set on foreign automotive parts is also expected to be adjusted. Refunds on parts tariffs will be possible up to an amount equivalent to 3.75% of the price of one manufactured car in the U.S., and in the second year, this will be reduced to 2.75%, with plans for gradual abolition, WSJ reported.
President Trump is expected to attend a rally commemorating the 100th day of his inauguration on the 29th in the outskirts of Detroit, Michigan. Michigan is part of the 'Rust Belt,' where major factories of U.S. automakers such as General Motors (GM) are located.
WSJ noted that "This measure is aimed at giving automobile manufacturers time to transfer their parts supply chains to the U.S.," adding that "In the short term, it could provide significant support to automakers."