According to the Financial Times, US President Donald Trump is reportedly planning to exempt automakers from some of the toughest tariffs, marking another concession in his ongoing trade war following intense lobbying by auto industry executives.
Citing two sources familiar with the matter, the report states that the plan would exempt auto parts from two specific tariffs: a 20% tariff referred to as the "fentanyl tariff" and a 25% tariff on steel and aluminum products.
However, the 25% tariff on all imported vehicles will remain in place. Another 25% tariff on auto parts is also set to take effect "no later than May 3," according to the report.
Sources highlight that ongoing discussions are primarily centered around simplifying the tariff implementation process, such as relaxing rules of origin requirements for auto parts. These policy adjustments reflect the Trump administration's response to mounting pressure from specific industries while maintaining the core stance of its "America First" trade policy.
While the US had previously excluded automotive goods from its "reciprocal tariffs" targeting key trading partners, domestic automakers have recently been pushing for further exemptions. The proposed concessions could signify a preliminary victory for the auto industry and another retreat from Trump's most aggressive tariff policies.
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