Bloomberg News reported on the 16th (local time) that the Donald Trump administration is pushing to extend eased tariffs on auto parts from the current two years to five years.
Sources cited by Bloomberg News said the U.S. Department of Commerce is set to announce a plan to extend for five years the system that allows reduced tariffs imposed on imports of auto parts.
Earlier, President Trump signed a proclamation in Apr. instructing a temporary two-year easing of tariff burdens for corporations that make cars in the United States using parts imported from abroad, and the Commerce Department is seeking to add three years to the existing two years.
At the time, through the proclamation, President Trump directed automakers to reduce tariffs for one year on parts equivalent to 15% of the value of cars assembled in the United States, and in the following year to reduce tariffs on parts equivalent to 10%.
Accordingly, the Commerce Department allowed automakers to use 3.75% of the manufacturer's suggested retail price aggregates of all cars assembled in the United States for one year starting in Apr. this year to offset parts tariffs. For the subsequent year, it allowed 2.5% of the total manufacturer's suggested retail price aggregates to be used to offset tariffs.
The sources said the related announcement could come as early as the 17th. Bloomberg News reported that the extension of the tariff relief is seen as the result of months of lobbying by U.S. automakers such as Ford and General Motors (GM).