Trump proposes exempting automakers from some tariffs

Odaily Planet Daily News According to the Financial Times, US President Trump intends to exempt automakers from some of the most stringent tariffs, which is another concession in the trade war after recent intensive lobbying by auto industry executives. According to two people familiar with the matter, this move will exempt auto parts from two tariffs, one is the tariff imposed on some imported goods to combat fentanyl production, and the other is the tariff imposed on steel and aluminum products. However, Trump's 25% tariff on all imported complete vehicles will remain. Another 25% tariff on auto parts will also be retained and will take effect from May 3. Although the United States has previously excluded automotive products from the "reciprocal" tariffs on major trading partners, American auto companies are still striving for more exemptions in the near future. These concessions will mark an initial victory for the auto industry and another retreat by Trump on his most aggressive tariffs. People familiar with the matter said that the current negotiations are mainly focused on simplifying the tax collection process, such as relaxing the rules of origin requirements for auto parts. This policy adjustment reflects that the Trump administration is responding pragmatically to pressure from specific industries while maintaining its core "America First" trade policy stance.