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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Former U.S. President Donald Trump is expected to sign an executive order on April 29 (local time) that will ease the burden of tariffs on imported automobile parts for a two-year period, ahead of their scheduled implementation on May 3.
According to Axios, the executive order will provide rebates of up to 15% on tariffs paid by automakers for imported auto parts. The tariffs were originally set to go into effect on May 3 following Trump’s earlier signing of the measures in March, as reported by The Wall Street Journal.
The new policy reportedly offers a one-year offset of 3.75% of a vehicle’s value, calculated based on a 25% tariff applied to 15% of the vehicle’s value. In the second year, the offset will be reduced to 2.5%, applying only to 10% of the vehicle’s value.
Commerce Secretary Howard Lutnick stated, “Automakers have made it clear that expanding domestic supply chains and production capacity takes time, and this is a realistic recognition of that.” He added, “If President Trump offers this leniency over the next two years, it will ultimately benefit the American economy.”
The relief is expected to apply equally to both U.S. and foreign automakers, aligning with the administration’s broader goal of revitalizing domestic automobile manufacturing.
Additionally, the executive order will ensure that the new 25% tariff on auto parts does not overlap with existing tariffs on steel and aluminum, avoiding redundant taxation.
Sources cited by WSJ noted that the policy will apply retroactively, allowing automakers to claim refunds for any duplicate tariffs already paid.
As Trump departed the White House for a rally marking his 100th day in office, he told reporters, “I just wanted to help them get through this short transition. I didn’t want to penalize them for not being able to source parts immediately.”
Trump reportedly made the decision after consulting with executives from major automobile manufacturers.
알파경제 Kim Jisun Reporter(stockmk2020@alphabiz.co.kr)
