Donald Trump, the president of the United States is set to relieve some of the levies on car dealings.
During his speech at the Oval Office to reporters, Trump said the levies on car parts would be adjusted whereas general car importations would not.
“I’m looking at something to help car companies with. They’re switching to parts that were made in Canada, Mexico and other places, and they need a little bit of time because they’re going to make them here,” he stated.
Apparently, while foreign-made cars retain the tariff imposed, car parts leave a 25% levy effective by May 3rd.
This development is aimed at exempting car parts from whatever tariffs Trump is imposing on China imports and the levies on Steel and Aluminum.
While this is likely to disrupt supply chains, it initially marks a win for the auto sector as Trump retreats.
Trump is making this move after some car maker executives lobbied.
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