US President donald trump may soon provide relief to automobile companies by reducing or removing tariffs on foreign auto parts. According to information given by the White House, trump may soon either reduce or completely announce the removal of tariffs on foreign auto parts. Under this, the burden of additional tariffs on cars and trucks being manufactured in America will be reduced.
Relief from the burden of many different taxes
At present, tariffs are applicable on many different things - tariffs on steel and aluminum, tariffs imposed on them to stop the supply of fentanyl from Mexico, canada and China, a 10 percent baseline tariff imposed on all countries under the reciprocal tariff. Apart from this, trump has imposed a tariff of 25 percent on foreign auto parts, which is going to be implemented from May 3.
Trump's new announcement may perhaps avoid the situation of imposing multiple taxes at once because along with the reduction or removal of tariffs on foreign auto parts, relief can also be given in separate taxes on aluminum and steel for cars imported from other countries.
trump to visit Michigan on Tuesday
US Commerce Secretary Howard Lutnick said in a statement, "President trump will make an agreement to reduce auto tariffs before his visit to Michigan on Tuesday." He said, "This agreement is a major victory of the President's trade policy, as it will reward companies promoting manufacturing in the country. Along with this, those manufacturers will also get an opportunity who are committed to investing in America and increasing manufacturing."
This change in auto tariff is going to happen at a time when trump is going on a tour of Michigan, which is considered the center of the American auto industry, on completion of 100 days of his second term. It is being told that trump will address a rally in Macomb County, Michigan and during this he will announce relief on auto tariffs. Under this new change, American car manufacturing companies will get a partial refund of the tariff imposed on auto parts imported from abroad, which is going to be implemented from May 3, on the basis of their domestic production. However, the refund will keep decreasing with time. The purpose behind this is to encourage car manufacturing companies to shift most of their supply chain to America.
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