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US President Donald Trump plans to spare car manufacturers with some of his most expensive prices in another commercial war after intense lobbying by industry leaders in recent weeks.
This decision would exempt the automotive parts of the prices that Trump would impose on imports from China to counter his role in the chemical exports of fentanyl, as well as those which have been taken from steel and aluminum – a “destroyed” tasks, according to two people knowing the question.
Exemptions would leave a 25% rate in place that Trump imposed on everyone imports of cars made abroad. A separate 25% sample on parts would also remain and should take effect from May 3.
Although Washington has already protected cars from the “reciprocal” prices announced on the main trade partners, American automobile companies have done in recent weeks for other exemptions.
The concessions would mark an initial victory for the automotive sector and another Trump retirement on its most aggressive price In the midst of the concerns that they would increase the prices of American cars, disrupt the supply chains and result in job losses.
Car leaders have intensified their criticism of prices during last week, Stellantis president John Elkann, warning that “American and European automotive industries are endangered” by Trump's trade policy.
Another main automotive manager said: “We have urged the administration – does not hit us again and again with all these other prices … because it really endangers the health of our sector.”
The stay is also the last panel that Trump is open to the offer of cuts to the privileged industries after his pricing plans have triggered a profound sale on the world markets this month and warnings that they could lead to an American recession.
Trump announced tailor -made “reciprocal” prices up to 50% on almost all American trade partners “Day of Liberation” on April 2, before later reducing the samples to a basic line of 10% for 90 days.
Last week, the administration said that it would exempt the consumer electronics such as laptops and smartphones from reciprocal prices, but could rather hit these imports with other samples later this year.
The president had also pointed out last week that there would be “help” For the automotive industry. He also first proposed cars's importation conditions made in Mexico and Canada as long as companies have respected the rules of the USMCA 2020 commercial agreement.
Vehicles and complete parts in accordance with the terms of the USMCA will see the 25% price applied only to their non -American content.
People with knowledge of the discussions said that current negotiations are mainly focused on the ease of implementation of samples – for example, by simplifying the rules on the place where the components of the car come.
Trump imposed 20% prices on all imports from China to retaliate for the role of the country in the manufacture of fentanyl. He then applied distinct “reciprocal” prices to Chinese imports, which were suffered by 125%.
Automobile parts are exempt from “reciprocal” prices, so that those in China are currently faced with the 20%”fentanyl” withdrawal, as well as all the applicable tasks for the steel and aluminum content, in parallel with a 25%vehicle rate.
The White House refused to comment.
