US President Might Temporarily Exclude The Auto Industry From Tariffs

US President Donald Trump has suggested granting the auto industry a temporary exemption from the tariffs he previously imposed, allowing manufacturers time to adjust their supply chains.

“I’m thinking about something to help some of the car companies. They need a little bit of time because they’re going to manufacture here, but they have to move plants from Canada, Mexico, and other places,” Trump said in the Oval Office. Donald Trump and his allies have offered a solution to avoid price increases due to car tariffs and calls to buy only American vehicles.

On March 29, Trump told NBC News that he “doesn’t care one bit” if foreign automakers raise their prices due to tariffs. He stated, “I hope they raise prices because if they do, people will buy American-made cars.” He also mentioned that these vehicles are available for export.

However, many automotive industry experts say it is not easy to bypass the price increase by buying American cars, because even those assembled in the US use imported auto parts.

Matt Blunt, president of the American Automotive Policy Council, representing Ford, General Motors, and Stellantis, said they support Trump’s goals to increase domestic manufacturing. But he warned that broad tariffs on parts could undermine those goals because they take time to adjust.

Trump announced 25 percent tariffs on cars in late March, calling them permanent, but has now increasingly backed down and revised his measures to mitigate the political and economic fallout.

• Read More: In Reaction To The New US Tariffs, Hyundai Will Not Increase Prices.