Detroit (AP) – President Donald Trump suggests that the automotive industry may be temporarily easing from “permanent” Tariffs he imposed earlier About business. The president did not specify how long the potential suspension would be or what it would involve; Automotive sector If the mandatory assembled vehicle remains, we are waiting for how the rules will change with a 25% tariff based on the US part.
Experts say a short pause is unlikely to give automakers a good chance to coordinate their vast global supply chains, but parts exemptions will certainly bolster the industry amid Trump’s trade war whiplash.
Trump He told reporters on Monday The automaker said, “We’re going to make them here, so we need a little time, but we need a little time. So I’m talking about that,” he said, referring to the relocation of production from Canada, Mexico and elsewhere. The news promoted Global Autostock on Tuesday.
In a statement, Matt Blunt, chairman of the American Auto Policy Council, representing domestic auto companies Ford, General Motors and Stellantis, said:
Trump announced a 25% automobile fare in late March. Duties on completed vehicles came into effect on April 3, but parts duties were set to begin in 30 days.
“The one month delay is intended to give the US government time to resolve rules to exempt the value of auto parts containing US-made materials that are not subject to customs duties.” insight Law firm Foley & Lardner has focused on the “carve-out” of parts certified under the Regional Trade Agreement, the US Mexican-Canada agreement. The Ministry of Commerce is expected to decide on a “system that calculates non-US content” by May 3rd.
At the same time, the automaker is navigating Steel and Aluminum Imports Taxation of at least 25%. 25% of all products from Canada and Mexico; 10% worldwide and mutual tariffs – suspended for 90 days, both cars are exempt. China’s tariffs are 145%.
“Suspension on car rates is a step in the right direction and will enable car manufacturers to offer more options at better prices for consumers,” Autos Drive America, which represents foreign automakers, said in a statement.
“Taxes will increase costs across the board. It is more expensive to build cars in the US and makes it difficult for families to find a vehicle that suits their needs,” the group added. “A suspension on auto parts allows automakers to continue production in the US without any confusion, but a suspension on finished vehicles will allow automakers to continue selling their vehicles and investing in US plants and jobs.”
The United Autoworkers Union did not respond to a request for comment.
Tariffs that have not been addressed have already caused chaos for many global sectors Especially the automotive industryrelies on complex networks of parts around the world.
Despite his proximity to Trump through so-called government efficiency, Tesla CEO Elon Musk was strayed from the president’s views on tariffs.
“It’s important to note that Tesla is not unharmed here,” Musk herself posted on social media platform X. “The impact of tariffs on Tesla remains important.”
Tesla, sold in the US, is supplied with many parts and the vehicle is assembled here. claim There are “most American cars.” The various trims on the Tesla Model y and 3 are at least 85% domestic content. Annual Made in America Auto Index.
For comparison, Ford builds around 80% of the vehicles it sells domestically.
The American and European automotive industry is “strongly affected by tariffs. In addition to the 25% tariffs imposed on vehicles, it will be affected by the layer of additional customs tariffs contained in aluminum, steel and parts,” Stellantis Chairman John Elkann noted on Tuesday the same period for the potential of this year’s automatic market.
“But it’s not too late if the US and Europe take the urgent action necessary to promote an orderly transition,” Elkan added. “We are encouraged by President Trump’s pointing out tariffs in the auto industry yesterday.”
Trump says he The tariffs are intended to strengthen US automobile manufacturingexperts say automakers can’t restructure their procurement in a short period of time.
Due to the nature of the business and the length of time it takes to design and manufacture products to run, it can take years to reevaluate the source and establish a new assembly operation.
“The automotive industry is turning the global supply chain that has been in place for decades upside down,” said Dan Ives, an analyst at Wedbush Securities, in a research note.
The tariffs they stand at now have been spent billions of dollars on automakers, affecting the supply of new and used cars, Increases dealer car buyers’ prices Thousands of dollars.
already, Some automakers have halted operations in Canada and Mexico And temporarily fired US workers.
Others have tried to preempt the impact of tariffs through appeals to customers. In a rare move, Ford and Jeep maker Stellantis began offering a limited-time employee pricing program to reach buyers before the price was most likely to hit a sudden price. Hyundai and Genesis have vowed to stabilize prices for the next two months.
Car buyers may be better off placing an extra few weeks in response to the latest policy changes.
The automotive industry’s tariff exemptions will be welcome, according to Joseph Yun, a consumer insight analyst at car buying company Edmunds. However, as tariff policies fluctuate, it is difficult to know whether exemptions will occur.
“The best course of action for consumers who are actively shopping for their next car is to look for an incentive program or a “protected pricing” program while available,” Yoon said. “If your purchase timeline is a bit on the horizon, it might be wise to wait for more details on the tariffs and the potential exemption results instead of rushing to a purchase that you might regret.”
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Alexa St. John is a climate reporter for the Associated Press. Follow her with x: @Alexa_stjohn. I’ll reach her (Email protection).
