Washington– WASHINGTON (AP) — President Donald Trump is giving domestic automakers an additional exemption from tariffs on auto parts, extending what was supposed to be… Short term discount Until 2030.
It’s part of a proclamation Trump signed Friday that also made official a 25% import tax on medium- and heavy-duty trucks, starting Nov. 1.
The action reflects the administration’s efforts to use tariffs to boost American manufacturing while also trying to protect the auto sector from high costs created by Trump’s import taxes on parts and raw materials.
the The special discount was initially announced in April It was scheduled to be reduced and then expire in 2027. At the time, Trump described it as short-term assistance “during this little transition period” with the expectation that automakers would move production lines back to the United States.
Senior administration officials said that the extension and amendments came after talks with the auto industry. The goal is to expand local production and make it more competitive. The officials insisted on anonymity as a condition of speaking to reporters before Trump signed the declaration.
The revised procedure provides a discount of 3.75% compared to the selling price of the locally assembled vehicle. This figure was arrived at by imposing a 25% import tax on parts that make up 15% of the vehicle’s sales price. Multiplying these two percentages together equals 3.75%.
The discount will now also be offered to truck and engine manufacturers, officials said.
Trump posted on his social media site on October 6 about new customs duties on imported trucks. A 10% tariff on buses will also be imposed as part of the measure.
The new tariffs do not apply to imports covered by the United States-Mexico-Canada Trade Agreement. This agreement, which entered into force in 2020, is ready to be renegotiated next year.
The moves come at a sensitive moment for the auto industry as consumers suffer from sticker shock. According to Kelley Blue Book, new car buyers spent an average of $50,080 in September, the highest average ever recorded. New car prices increased by 3.6% compared to last year.