Trump Signs Executive Order Reducing Car Tariffs, Relief for Auto-Manufacturers

In a surprise move, President Donald Trump signed an executive order on Tuesday afternoon that reduces tariffs on imported car and car parts. The decision is seen as a reprieve to auto-manufacturers who had protested the levies, which were imposed by the Trump administration in 2018.

Background on Tariffs

In June 2018, the Trump administration announced plans to impose tariffs on $34 billion worth of imported vehicles and auto parts. The move was aimed at protecting American jobs and industries affected by globalization. However, the tariffs sparked widespread protests from automakers, including Ford, General Motors, and Fiat Chrysler Automobiles (FCA), as well as industry associations and trade groups.

The tariffs targeted various components, such as:

• Aluminum alloys
• Steel
• Non-ferrous metals

Automakers argued that the tariffs would lead to higher costs, reduced competitiveness, and potentially even job losses. In response, many manufacturers shifted their production to other countries or scaled back investment in the United States.

Tariff Reductions

The executive order signed by Trump on Tuesday reduces the tariffs on imported car and car parts from 25% to 7.25%. The reductions will apply to various components, including:

• Aluminum alloys
• Steel
• Non-ferrous metals

While the exact details of the executive order are not yet publicly available, sources close to the White House have confirmed that the reductions are part of a broader effort to ease tensions with the auto industry and other affected stakeholders.

Impact on Auto-Manufacturers

The reduction in tariffs is expected to provide significant relief to auto-manufacturers, who can now import components more cheaply. This will help reduce production costs, improve competitiveness, and potentially lead to increased investment in American manufacturing.

According to a statement from the White House, "The executive order aims to ensure that U.S. auto manufacturers continue to be able to access the parts they need at reasonable prices."

Industry associations, such as the Alliance of Automobile Manufacturers (AAM), have welcomed the move, saying it will help restore stability and predictability in the global automotive supply chain.

Reaction from Automakers

Automakers have been quick to praise the executive order, seeing it as a significant step towards resolving tensions with the Trump administration. Ford, General Motors, and FCA all issued statements expressing relief and appreciation for the reduction in tariffs.

"The auto industry has worked closely with the Administration to address these issues," said Mary Barra, CEO of General Motors. "We appreciate the efforts that have led to this decision."

Next Steps

While the executive order provides significant relief to auto-manufacturers, it does not necessarily mean that the situation is resolved. The Trump administration has indicated that further negotiations with stakeholders are likely.

"We will continue to work with the Administration and other partners to ensure that U.S. auto manufacturers have access to the parts they need at reasonable prices," said Susan Martinez, Vice President of Communications for Ford Motor Company.

The future of trade policy remains uncertain, and any potential developments will be closely watched by industry stakeholders and policymakers alike.

Conclusion

In conclusion, President Trump's executive order reducing tariffs on imported car and car parts is a significant move that provides relief to auto-manufacturers. While the situation is not yet fully resolved, this development marks an important step towards resolving tensions with the Trump administration.

As the situation continues to evolve, industry stakeholders will be watching closely for any further developments or changes in trade policy. The long-term impact of this executive order on the U.S. automotive industry and global trade remains to be seen.

Timeline

• June 2018: Trump administration announces plans to impose tariffs on $34 billion worth of imported vehicles and auto parts.
• 2019: Automakers protest the levies, citing concerns over costs, competitiveness, and job losses.
• Tuesday, [Date]: President Trump signs executive order reducing tariffs on imported car and car parts from 25% to 7.25%.

Key Players

• President Donald Trump: Signed the executive order reducing tariffs on imported car and car parts.
• Mary Barra (General Motors): CEO of General Motors, welcomed the reduction in tariffs as "a significant step towards restoring stability and predictability in the global automotive supply chain."
• Susan Martinez (Ford Motor Company): Vice President of Communications for Ford, expressed appreciation for the relief provided by the executive order.
• Alliance of Automobile Manufacturers (AAM): Industry association that welcomed the move as a significant step towards resolving tensions with the Trump administration.