Donald Trump is expected to implement several measures to counteract the impact of his tariffs on the car industry, insiders have said.
Sources close to the president have told the Wall Street Journal he is planning to ease some taxes on foreign vehicle parts used to manufacture cars in the US.
The move is designed to ease the financial strain on companies hit by Trump’s 25 percent auto tariffs, because they will be relieved of extra payments for other duties like those on steel and aluminum, according to the WSJ.
It comes as Trump, 78, is set to hold a rally in Detroit, Michigan, known as ‘Motor City’ because it’s historically been home to several major auto manufacturing plants.
Trump will visit Macomb County on Tuesday to mark his first 100 days in office, the White House press secretary said.
‘President Trump is excited to return to the great state of Michigan next Tuesday, where he will rally in Macomb County to celebrate the FIRST 100 DAYS!’ Karoline Leavitt said Wednesday on social media.
The 100th day in office is a traditional early milestone in which a president’s progress is measured against campaign promises.
Michigan was also one of the key battleground states Trump flipped last year from Democrats on his path back to the White House.
Sources claim Trump is planning to ease some taxes on foreign vehicle parts used to manufacture cars in the US
The move is designed to ease the financial strain on companies paying Trump’s auto tariffs
Trump has not traveled much since taking office outside of personal weekend trips, apart from to visit disaster zones in North Carolina and California, and for Pope Francis’ funeral in Rome.
The move to ease the financial strain of tariffs would be retroactive, meaning automakers would be reimbursed for any levies already paid.
Trump’s 25 percent automotive import tariffs took effect April 3, causing shock waves across the global industry since supplies come from all over the world.
Vehicles made in Mexico and Canada face the levy, but automakers compliant with the terms of the U.S.-Mexico-Canada Agreement can deduct the value of US content.
The tariffs have pushed automakers to make production changes, with General Motors increasing truck output at an Indiana plant and Stellantis temporarily shutting down production at a plant in Mexico and one in Canada.
General Motors has also said it is temporarily laying off 200 employees at the factory that builds the EV GMC Hummer.
General Motors has also said it is temporarily laying off 200 employees at the factory that builds the EV GMC Hummer in Detroit, Michigan, also known as ‘Motor City’ (shown above)
Experts have estimated that the price of cars will rise by thousands of dollars due to Trump’s tariffs.
According to the Anderson Economic Group the cost of a car that’s built in the U.S. – but requires foreign parts – could also cost more due to the tariffs.
The group estimated Americans could see a rise between $3,500 to $12,000 for each vehicle.
