Automakers argued that the complexity of supply chains necessitated time to procure all parts domestically.
US President Donald Trump on Tuesday eased the impact of his new 25 per cent tariffs on the auto industry as part of efforts to help manufacturers relocate supply chains for car parts used in the United States over the next two years.
In another reversal of Trump’s extensive additional tariffs, the relief, allowing all American and foreign automakers producing vehicles in the United States to claim some reimbursements, was announced as he marked the 100th day of his nonconsecutive second term.
“They took in parts from all over the world. I don’t want that. I want them to make their parts here, but I gave them a little bit of time,” Trump said in a speech to thousands of supporters at a community college north of Detroit, home to the American auto industry.
The temporary alleviation of some of the tariff burden came after automakers argued that due to the complexity of their supply chains it would take time to procure domestically all of the parts necessary to manufacture vehicles in the United States.
Along with consumers, the auto industry has voiced concern that Trump’s hefty tariffs could sharply raise car prices. Under the relief, a carmaker will be allowed to offset the tariffs for 15 per cent of the suggested retail price of an automobile assembled in the United States during the first year of the tariffs and 10 per cent in the second year— Kyodo
#The Global News Light of Myanmar