President Trump signed friday announcement intended to offset the impact of auto tariff With extension of credit to eligible car manufacturers.
Automakers who import car parts into the US will get a rebate of 3.75 percent off a vehicle’s listed retail price through 2030 under Friday’s order. Originally, the program was scheduled to end in 2027.
The White House said this percentage reflects the expected tax when a 25 percent tariff is imposed on 15 percent of the value of U.S.-assembled automobiles.
Friday’s executive order also set a 10 percent tariff on imports of buses and imposed a new 25 percent tariff on imported medium- and heavy-duty trucks starting Nov. 1.
This move from the White House comes after car manufacturers informed about a billion dollars projected loss From the Trump administration’s new trade policies earlier this year. lobbying groups are pushed for relief Amidst the changes.
Trump issued an executive order in April protected manufacturer Getting a double whammy from the President’s auto tariffs.
“The idea here is that we want to encourage domestic manufacturing of vehicles, and one way to do that is to say, OK, if we understand that 100 percent of a vehicle can’t be used with goods that are already in the United States,” a senior administration official said Friday.
“And so for parts that need to be imported, we are essentially allowing a credit to offset any tariff obligations that they may incur because they are importing the parts for manufacturing here in the United States,” the official said.
