People work on the production line of auto parts in a car manufacturer in Kingdao on Saturday, March 1, 2025 in Shandong province of Eastern China.
You Fonging | Feature China | Future publication | Getty images
President Donald Trump is considering exemption for vehicle manufacturers of some tariffs declared by his administration, the White House on Wednesday confirmed CNBC’s Imon Javors.
Follows confirmation Financial time report The Trump plans to exempt auto parts from tariffs on imports from China, which Trump had planted for levy on steel and aluminum along with fentinel production.
FT said that this exemption will be different from 25% tariffs on imported vehicles as well as 25% tariffs on imported auto parts which are going to be effective by May 3, FT said.
The shares of several vehicle manufacturers and suppliers were marginally more in hours of trading on Wednesday.
The automakers and auto policy groups are advocating Trump for some relief on tariffs, which are Stacking on motor vehicle industry.
Trump exempted auto from his so -called “mutual” geographical tariffs, which would put standing duties on imports from dozens of countries. But the auto industry is still facing 25% tariffs on all imported vehicles in America along with 25% levy on steel and aluminum.
Auto stock
The tariff on auto parts set for May 3 will be in addition to those other duties.
Any discounts of those different rates or “de-stacking” will be welcomed by motor vehicle authorities. In particular, the upcoming tariffs on auto parts are industry officials Compounding are concerned about costs,
This week six of the top policy groups representing American motor vehicle industry Uncharacteristically joined forces To advocate the Trump administration against the implementation of the upcoming tariff on auto parts.
A letter to Trump officials stated in a letter, “President Trump has indicated an openness to reconsider the 25 percent tariff of administration on imported automotive parts – recently a positive growth and reception relief will be similar to tariff relief for consumer electronics and semiconductors. It would be a positive growth and reception relief,” Trump officials set in a letter.
Group – representing franchiseed dealers, suppliers and almost all major vehicle manufacturers – said that upcoming levy can endanger American motor vehicle production and note that many auto suppliers are already “in crisis” and will not be able to bear additional cost growth, which lead to comprehensive industry problems.
General Motors CEO Mary Barra, fulfilling the concerns of other officials, stated on Wednesday that the automaker requires clarity and frequent rules for better competition.
“First, I need clarity, and then I need continuity,” Bara said Semaphor World Economy Summit“To make those investments and to be good stewers of our boss’s capital, I need to understand what policy is.”
Barra said that GM has made Some changes In response to developing trade policy, but there is no plan to make any “significant changes” until clarity on US rules.
