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Trump backs down a bit on auto industry tariffs—but only a bit

GettyImages 1453558401 2048x1536

GettyImages 1453558401

President Donald Trump will work easily in the automotive industry this week. After a warning Its trade battle Will result in Increase in prices. And fewer vehicles are being constructed, in the past two days, government officials have indicated that Trump will sign an executive order today, which will reduce some pain by increasing the increase in imports of 25 %.

Trump has been approaching up to prices Nothing if not contradictory. In this case, the White House is not falling 25 % tariffs on all imported vehicles, but other tariffs imposed by the Trump administration, such as 25 % on steel and aluminum, which were implemented in February.

With the possibility of an additional impact on more than one price on prices, new car prices may rise in the coming weeks. Now, instead of them, only much is likely to rise. According to Wall Street JournalThe move will be related to retreat, and carmakers (for example) have paid aluminum or steel rates above car import rates that seek the return of the former.

A separate 25 % tariff on imported car parts is implemented on Saturday. They are still planned to implement, but importers will be able to apply for small compensation for up to 3.75 % of US -made costs for a year, then 2.5 % of the car price for the second year.

How easy the government is to make compensation, and where the money will come from, it is not yet clear.

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