Kathmandu. US President Donald Trump has agreed to ease the impact of tariffs on auto manufacturers hit by several tariffs, US media reported on Monday.
The move comes ahead of Trump’s rally near Detroit on Tuesday night to mark his first 100 days in office.
The change means that companies that pay a 25 percent tariff on car imports will not have to pay other tariffs, such as those on steel and aluminum, as first reported by The Wall Street Journal. The administration is also allowing some rebates on foreign auto parts, which were set to take effect on May 3, according to the Journal.
American automakers are among the hardest hit sectors, as tariffs hit imports from Mexico and Canada. Detroit automakers have maintained investments in those markets since Trump renegotiated the North American Free Trade Agreement during his first term.
Analysts have warned that tariffs could lead to higher prices, which could reduce U.S. car sales and threaten jobs. Commerce Secretary Howard Lutnick said Trump was “building important partnerships,” according to the Journal. “This agreement is a major win for the president’s trade policy by rewarding companies that already produce domestically and providing a path for manufacturers committed to investing in the United States and expanding domestic production,” Lutnick said.
American automakers have welcomed the change. “We are grateful to President Trump for supporting the American automotive industry and the millions of Americans who depend on us,” said General Motors CEO Mary Barra.
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