Trump proposes exempting automakers from some tariffs

Odaily News US President Donald Trump plans to exempt automakers from some of the toughest tariffs, the Financial Times reported, in another concession in the trade war following recent intensive lobbying by auto industry executives. The move will exempt auto parts from two tariffs, one on some imported goods to combat fentanyl production and the other on steel and aluminum products, according to two people familiar with the matter. However, Trump's 25% tariff on all imported vehicles will remain. Another 25% tariff on auto parts will also remain and will take effect on May 3. Although the United States has previously excluded auto products from the "reciprocal" tariffs on major trading partners, US auto companies have recently been pushing for more exemptions. These concessions will mark an initial victory for the auto industry and another retreat by Trump on his most aggressive tariffs. People familiar with the matter said that the current negotiations are mainly focused on simplifying the tax collection process, such as relaxing the rules of origin requirements for auto parts. This policy adjustment reflects that the Trump administration is responding pragmatically to pressure from specific industries while maintaining the core position of the "America First" trade policy.