The administration of US President Donald Trump has taken measures to mitigate the impact of the imposed tariffs on the auto sector, Reuters reports, citing official sources, BTA reports.
According to the new decision, some of the tariffs on foreign-made auto parts used to assemble cars in the United States will be eased. In addition, double taxation of already taxed cars manufactured abroad will be prevented.
“President Trump is building a strong partnership with both domestic automakers and great American workers,“ said Commerce Secretary Howard Lutnick. "This agreement is a major victory for the president's trade policy, rewarding companies that manufacture domestically and providing an opportunity for those that plan to invest in America to expand production," he added.
Last week, leading representatives of the US auto industry urged Trump to abandon the proposed 25% tariff on imported auto parts. They warned that such a measure would lead to higher car prices and a decline in sales.
"Most suppliers do not have the financial resources to cope with the shock caused by new tariffs. Many of them are already struggling and face the risk of production shutdowns, layoffs and even bankruptcy," the open letter to the authorities said. It also stressed that the failure of one supplier could block the entire production line of car companies.