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President Donald Trump is expected to announce the decision to reduce the impact of tariffs on car manufacturers on Tuesday in Michigan, Fox Business confirmed.
A source within the Trump administration said the decision follows the good faith efforts of the automotive industry to transfer the manufacture of return to the United States, and added that Trump wants to give them a “track” with their business.
The Secretary of Commerce, Howard Lutnick, said the president is “building an important association” with “manufacturers of national cars and our great American workers.”
“This agreement is a great victory for the president’s commercial policy by rewarding companies that manufacture at the national level, while providing track track to manufacturers who have expressed their commitment to invest in the United States and expand their national manufacture,” Lutnick said.
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President Donald Trump will announce on Tuesday a decision to reduce the impact of tariffs on car manufacturers, said an administration official to Fox Business. (Frederic J. Brown / AFP through Getty Images / Getty Images)
The reduction will prevent car manufacturers who already pay tariffs are also affected by steel and aluminum, the Wall Street Journal reported. Automobile manufacturers would also allegedly receive reimbursements for already paid rates.
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The decision to reduce tariffs on car manufacturers occurs when the industry has made efforts in good faith to return manufacturing to the United States, the official said. (Jeff Kowalsky / AFP through Getty Images / Getty Images)
The Trump administration decided the rates in an attempt to boost national manufacturing and there were plans to impose a separate 25% rate in car parts from May 3.
Initially, the parties that comply with the United States-Mexico Agreement would be exempt, although the Commerce Department was expected to develop a plan to impose the rate on non-American components.
The agency was also expected to establish a process to impose tariffs on other parts of cars at the end of June.
President Donald Trump is expected to have the announcement affect car manufacturers on Tuesday in Michigan. (Reuters/Phil McCarten/File Photo)
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Since a 25% rate was imposed In all imported passenger vehicles In April, automobile experts have been concerned that the cost of new vehicles throughout the industry would receive great success.
The National Cars Concessionaires Association raised concerns this year about “customers who match the vehicles they can pay”, describing it as “a continuous challenge for new car merchants and trucks in the United States.”
Edward Lawrence and Daniella Genovese de Fox Business contributed to this report.
