Trump, Reviewing Easing Of Car And Parts Tariffs...Pursuing Partial Tariff Refund

Donald Trump President Of The United States (Source: EPA)

Donald Trump President Of The United States plans to officially announce soon a policy to partially ease the burden of high tariffs on foreign automobiles and parts. This measure is designed to resolve the issue of overlapping taxes with items such as steel or aluminum, and even refund tariffs previously paid to a certain extent.

The Wall Street Journal reported on the 28th (local time) that President Trump plans to adjust the 25% tariff imposed on foreign automobiles so that it does not overlap with tariffs imposed on other imports. As a result, car manufacturers are expected to be able to reclaim tariffs that were doubly burdened.

In particular, the 25% tariff on 150 parts items, scheduled to be imposed from the 3rd of next month, is also included in the relief target. In the first year, tariffs will be refunded up to 3.75% of the value of vehicles produced in the United States, and in the second year, the refund rate will be reduced to 2.5% and gradually phased out.

This measure is expected to be announced just before President Trump's 100th-day inauguration event in Detroit, Michigan, on the 29th. Detroit is the center of the American auto industry, and this announcement is interpreted as partially accepting opposition from the local automobile industry and labor unions.

Earlier this month, the Trump administration abruptly implemented a 25% high tariff on foreign automobiles, which significantly increased the burden on domestic car manufacturers and parts suppliers.

The Trump administration appears to intend to expand domestic production through this measure while minimizing supply chain disruption in the auto industry. However, specific explanations regarding tariff refund funding or procedures have not yet been provided.