People work in the auto parts production line in a car manufacturer in Qingdao in the province of Shandong in China this on Saturday, March 1, 2025.
Yu Fangping | Chinese characteristic | Future publication | Getty images
President Donald Trump is considering exemptions for car manufacturers of some rates announced by his administration, the White House on Wednesday confirmed Eamon Javers de CNBC.
Confirmation follows a Financial Times report That Trump plans to exempt the car parts of the tariffs on the imports of China that Trump imposed to counteract the production of fentanyl, as well as the levies on steel and aluminum.
The exemption would be separated from 25% tariffs in imported vehicles, as well as 25% tariffs in imported cars that are scheduled to enter into force before May 3, the FT reported.
The actions of many automobile and suppliers manufacturers were marginally higher on Wednesday in trade off hours.
Separately, on Wednesday, according to reports, Trump said a 25% tariff imposed on cars imported from Canada to the United States could rise.
“When I put tariffs on Canada, they are paying 25%, but that could increase, in terms of cars,” Trump told journalists in the oval office. “All we are doing is: ‘We do not want your cars, with due respect. We really want to make our own cars.”
Automobile manufacturers and automotive policy groups have been pressing Trump for some relief in tariffs, which have accumulated in the automotive industry.
Trump exempted the cars of his so -called “reciprocal” geographical tariffs that would put tariffs steep tariffs on imports from dozen countries. But the automotive industry still faces 25% of the levies in steel and aluminum, as well as a 25% rate in all vehicles imported in the US.
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The rate of the automobile pieces established for May 3 would be additional to those other tasks.
Any exemption or “deployment” of these various rates would be welcome by automotive executives. In particular, the next auto parts tariffs have industry officials concerned with compound costs.
This week, six of the main groups of policies representing the US automotive industry.
“President Trump has indicated an opening to reconsider the tariffs of 25 percent of the administration in the imported automotive pieces, similar to the recently approved tariff relief for consumption electronics and semiconductors. That would be a positive development and a welcome relief,” the groups established in a letter to Trump officials.
The groups, which represent distributors, suppliers and almost all the main cars manufacturers, said the next taxes could endanger the automotive production of the United States and pointed out that many car suppliers are already “in danger” and could not pay additional cost increases, which leads to broader industry problems.
General Motors CEO Mary Barra, echoing the concerns of other executives, said the car manufacturer on Wednesday needs clarity and consistent regulations to compete better.
“First, I need clarity, and then I need consistency,” Barra said during Semafor World Economy Summit. “To make these investments and be good administrators of the capital of our owner, I need to understand what the policy is.”
Bar said that GM has made some changes in response to evolving commercial policy, but does not plan to make “significant changes” until there is clarity in US regulations.
