Donald Trump To Review Tariffs For Automakers

U.S. President Donald Trump is preparing to ease certain tariffs to give automakers more time to relocate their operations to the United States, Azernews reports.

According to the proposed plan, companies currently paying 25% duties will be exempt from tariffs on steel and aluminum. In addition, manufacturers may be eligible for compensation for payments already made.

The White House also intends to revise import duties on automotive components, with changes expected to take effect on May 3.

Last week, representatives from the auto industry urged President Trump to lift the 25% tariff on imported parts, warning that the duties would lead to sharp price increases and a drop in sales. General Motors, Toyota Motor, Volkswagen, and Hyundai have already reported difficulties that could result in production halts, layoffs, and even bankruptcies at local facilities.

It's worth noting that U.S. tariffs on Chinese imports have led to a 60% drop in cargo shipments in that direction. Major American retailers have also warned the White House that they may face shortages and price hikes as early as May.

However, experts remain skeptical that lifting tariffs quickly will be enough to stop the ongoing economic disruption or rein in soaring inflation. Some economists argue that uncertainty in trade policy has already eroded investor confidence and could have long-term negative effects on U.S. manufacturing.

Despite the tariffs, several Chinese automakers are reportedly exploring the possibility of opening assembly plants in the U.S. This move could allow them to bypass import duties while gaining direct access to one of the world's largest car markets.

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