Posted By Global Banking and Finance Review
Posted on April 23, 2025
(Reuters) -U.S. President Donald Trump is planning to spare carmakers from some tariffs following intense lobbying by industry executives over recent weeks, the Financial Times reported on Wednesday, citing a couple of people familiar with the matter.
The report said that Trump could exempt tariffs on car parts coming from China while also levying duties on imported steel and aluminum.
The exemptions, however, would leave in place the 25% tariff Trump imposed on all imports of foreign-made cars. The 25% duty on foreign-imported car parts, which is due to take effect on May 3, is also expected to continue, according to the report.
The White House did not immediately respond to a Reuters request for comment.
The development comes as U.S. automakers scramble to find ways to tackle Trump's on-again, off-again tariffs, which are expected to raise car prices in the country, dent profits of carmakers and parts suppliers, and disrupt the long-stretched supply chains.
The Center for Automotive Research published an analysis earlier this month saying that Trump's 25% tariffs on automotive imports will escalate costs for automakers by about $108 billion in 2025.
Ford last week said it halted shipments of some of its vehicles to China, as it started facing the heat from retaliatory tariffs that have made vehicles face taxes as high as 150%.
(Reporting by Abhinav Parmar in Bengaluru; Editing by Alan Barona)