Global trade war, Trump to exempt some auto tariffs – Financial Times

Credit: Xinhua/NAN

In the global trade war between America and the rest of the world, President Donald Trump of the United States (U.S.) plans to spare carmakers from some tariffs, Financial Times (FT) reported on Wednesday.

Financial Times (FT) noted that as part of a tariff “destacking” plan, car parts would be relieved of some of the duties imposed by Trump.

The exemptions, FT said, would however, leave in place a 25 per cent tariff imposed by Trump on all imports of foreign-made cars.

It said that a separate 25 per cent levy on parts would remain, but would be put into effect by May 3.

“Although Washington had already shielded autos from the ‘reciprocal’ tariffs announced on major trading partners, U.S. auto companies have in recent weeks pushed for further exemptions.

“The concessions will mark an initial win for the auto sector and another retreat by Trump on his most aggressive tariffs amid concerns that they will push up U.S. car prices.

“It will also disrupt supply chains and cause job losses,” FT said.

Car executives have stepped up their criticism of the auto tariffs, with Stellantis Chairman, John Elkann warning that “American and European car industries are being put at risk.’’

“This is done by Trump’s trade policy,” the FT added.